Private consumption in Mexico grew 4.3% in real terms in 2023, to 17 trillion 472 billion pesos. 

The amount is expressed in constant pesos with purchasing power as of December 31, 2018.

Here is the trend of this indicator:

• 2019: $16 trillion 483,000 million.
• 2020: 14 trillion 730 billion dollars.
• 2021: 15 trillion 922 billion dollars.
• 2022: 16 trillion 747,000 million dollars.
• 2023: $17 trillion 472 billion.

Private consumption

The growth of economic activity and the positive structural shift to higher private consumption in Mexico are driven by demographics. 

On the other hand, credit growth has increased annually by an average of 12.4% over the previous three years through December 2023, through corporate and public debt consumption financing sources (distributive policy).

The distributive economic policy and the massive increase in the minimum wage, as well as the formalization of employment, have begun to structurally transform the consumption segment of approximately 59% of the Gross Domestic Product (GDP). 

Inegi reports 650,000 new formal workers in 2023 compared to a 24-year average of 410,000 new formal workers per year.

GDP

In 2019, the Mexican economy continued to fall, resulting in a slight contraction, driven primarily by declines in private oil consumption and manufacturing exports, and weak gross fixed investment. 

Mexico’s GDP declined 8.6% in real terms during 2020, reflecting the negative economic effects of the Covid-19 pandemic and months of production and mobility restrictions implemented in certain states. 

In 2023, Mexico’s GDP increased 3.2% in real terms, reflecting the waning effects of the Covid-19 pandemic, the resilience of the U.S. economy, progress on public infrastructure projects, strong levels of private consumption and domestic spending, and a strong labor market and industrial sector.