Mexico | Growth in 2023: resilient consumption with headwinds from the United States

Summary

In 2022, economic growth in Mexico was 3.1%, higher than what the consensus anticipated a year ago. I believe that this performance is explained, fundamentally, by four factors.

Key points

• Key points:
• The first is that there was still a rebound effect after the crash caused by the pandemic. Mexico took longer to recover that its peers.
• The second is that consumption performed very well, growing at a rate of 6.2%. This explaines by the fact that real wages grew.
• The third factor behind the economic performance in 2022 is the significant growth registered in manufacturing, driven by the dissipation of the bottlenecks that had jeopardized global supply chains.
• Finally, the fourth factor was the significant growth in investment in imported capital goods and imports of machinery and equipment, which grew 22% and 16%, respectively, a sign taht the nearshoring movment is alrady havig some effects.

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