Industrial production in Mexico grows by 2.5% in the first quarter of 2023

MEXICO - Industrial production in Mexico grew by 2.5% year-on-year in the first quarter of 2023, driven in particular by energy generation and distribution, the National Institute of Statistics and Geography (Inegi) reported.

This figure is the result of a year-over-year increase, based on original figures, in all sectors, led by the generation, transmission and distribution of electricity, water and gas supply (4.3%).

This was followed by increases in manufacturing industries (2.7%), construction (2.1%), and mining (1.7%).

In March alone, industrial production rose by 1.6% compared to the same month in 2023.

This is the result of year-over-year increases in electricity generation and water and gas supply (4%), mining (2.2%), construction (2.1%) and manufacturing (1.1%).

In contrast, the monthly indicator of industrial activity (IMAI) decreased by 0.9%, in real terms and seasonally adjusted figures, in March compared to the previous month.

This was due to monthly decreases in mining (-3.5%) and manufacturing (-1.1%).

Although there were monthly increases in construction (1.3%) and in electricity generation and water and gas supply (0.9%).

The figures reflect the performance of Mexico's economy, whose gross domestic product (GDP) grew by 3.9% year-on-year and by 1.1% quarter-on-quarter in the first quarter of 2023, according to Inegi's timely estimate.

Industrial production in Mexico grew by 3.3% year-over-year in 2022, particularly by manufacturing and with increases in all sectors.

Mexico's GDP grew by 3.1% in 2022 driven by all sectors, while in 2021 it increased by 4.8%, lower than the government's expectation.

Mexico was one of the countries in Latin America that took the longest to recover its GDP after the Covid-19 pandemic, which caused a historic contraction of 8.2% in 2020.

For this 2024, the Government estimates that Mexico's economy will grow around 3%.