Imports of capital goods to Mexico rose at a year-on-year rate of 18.9% in 2022, to US$48.203 billion, Inegi reported.
In Mexico, gross capital formation had a cumulative drop of 5.1% in the period between 2017 and 2019, followed by a significant contraction, to the tune of 17.8% in 2020.
Mexico’s merchandise trade balance (millions of dollars)
Imports of capital goods
Although private investment rebounded in 2021, growing by 11.2%, by the end of 2021 it was still almost 4% below the February 2020 level.
This result is in particular a reflection of the low investment in construction, which in December 2021 was still 7.8% below its pre-pandemic level, while the machinery and equipment component recovered and was above its pre-pandemic level in December, according to the seasonally adjusted series of the monthly indicator of gross fixed investment.
Imports of capital goods to Mexico showed the following trend of ups and downs: 2018 (US$45.528 billion), 2019 (US$41.236 billion), 2020 (US$33.273 billion) and 2021 (US$40.528 billion).
During the third quarter of 2022, the Mexican economy expanded at a faster pace than during the first two quarters of the year, despite continued uncertainty regarding global economic conditions, prevailing inflationary pressures, rising interest rates, and the adverse economic effects of the Russia–Ukraine conflict.
The third quarter also saw a decline in Covid-19 infections, a 0.58% increase in industrial activity (driven by transportation equipment manufacturing) and a 1.08% expansion of the services sector, which recorded the fourth consecutive quarter of positive growth. Other sectors, however, contracted during the quarter, including construction, which recorded a 3.2 percent decline.
Mexico’s GDP
On September 20, 2022, the Ministry of Economy presented the strategy Rumbo a una Política Industrial with the objective of providing a roadmap for public and private industrial sector reform efforts.
The strategy focuses on new technologies and innovation, human capital development, the role of regional economies and small and medium-sized enterprises, and the sustainability of industrial activities.
In 2021, the Mexican economy rebounded, with GDP expanding by 4.8 percent. This was despite the fact that GDP stagnated in the fourth quarter, after contracting in the third quarter compared to the second quarter.
In particular, in the fourth quarter of 2021, services contracted but there was a rebound in manufacturing exports and oil exports as a result of an expansion in sales of products other than crude oil.
The value of imports continued to grow, with increases in consumer, intermediate use and capital imports.
