Mexico captured 659.4 million dollars of Foreign Direct Investment (FDI) in the construction industry during the first half of 2023, according to data from the Ministry of Economy.
Of that total, $569.6 million were invested in the construction of infrastructure for the supply of water, oil, gas, electricity, and telecommunications.
In turn, Mexico received 48.6 million dollars of FDI for facilities and equipment in construction.
During 2022, construction sector output increased 0.3% in real terms, compared to an increase of 8.3% in real terms during 2021.
The construction sector is highly influenced by cyclical trends and is significantly affected by fluctuations in government and private sector spending.
It has experienced substantial growth due to recent reconstruction, modernization, and expansion of the federal highway network, along with other major infrastructure projects.
However, the sector has shown a downward trend in housing and construction output since 2019.
In the first half of 2023, construction companies reported a 10.5% increase in production value, in nominal terms, compared to the same period in the previous year.
Construction Industry
The Mexican economy is primarily driven by sectors such as manufacturing, oil and petrochemicals, tourism, agriculture, transportation and communications, construction, mining, and electric power.
In 2022, the services sector contributed 63.6% to GDP and employed 62.7% of the workforce. The industrial sector followed with 28.5% of GDP and 25.1% of employment, while the primary sector accounted for 3.4% of GDP and 11.5% of the labor force.
Foreign Direct Investment (FDI) inflows into Mexico’s construction industry declined from US$917 million in 2019 to US$146 million in 2020. Although the sector showed some recovery in 2021 with US$433 million, FDI dropped again to US$390 million in 2022.
The all-time high was in 2017, at $3,361 million.
In 2022, the National Reconstruction Program received 3.06 billion pesos from various sources, including FONDEN, the Federal Expenditure Budget and other foundations, to fund disaster relief activities.