Mexico Regional Sectoral Outlook. Second half 2022

Economic growth in 2023 will be modest and driven by services. A drop in the secondary sector (mainly via Manufacturing) is anticipated due to the general slowdown of the economy. Industrial and tourist entities recover first.

Key points

• Key points:
• In 2023, Accommodation, Information and Real Estate Services will grow the most: 5.6%, 3.3% and 2.8%, respectively.
• Recreation, Manufacturing, Wholesale Trade and Transportation sectors, which are highly procyclical, will fall due to the general slowdown in the economy.
• Automotive sector grew 4.1% in 2Q22, above national GDP due to the reduction in bottlenecks, without reaching recovery.
• Mexico would have achieved an additional 1.8% annual GDP growth since 2018 as a result of Nearshoring. But it faces challenges on several fronts, particularly in electricity.

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