Gross fixed investment in Mexico recorded 18.1% year-over-year growth in April

MEXICO - Gross fixed investment in Mexico grew by 18.1% year-on-year last April, driven in particular by the machinery sector, the National Institute of Statistics and Geography (Inegi) reported.

This result for the fourth month of 2024 was due to annual growth of 16.8% in construction and 19.5% in machinery and equipment, detailed the autonomous institute based on original figures.

Private investment rose by 19.1% year-on-year and public investment by 9.4%.

Thus, gross fixed investment accumulated a rise of 11.9% year-on-year in the first four months of the year, with an increase of 14.4% in construction and 9.2% in machinery and equipment.

Private investment rose by 12.2% in the first four months of the year and public investment by 9.5%.

On the other hand, investment rose by 0.9% in April versus the previous month, according to seasonally adjusted data.

This was due to a 1.6% monthly increase in construction, but was offset by a 0.8% decline in machinery and equipment.

The figures are a reflection of the performance of Mexico's economy, which grew 0.3% quarter-on-quarter and 1.6% year-on-year in the first quarter of the year.

Mexico's gross fixed investment soared by 19.7% in 2023 due to the boom in the phenomenon of chain relocation or "nearshoring", in which companies transfer production lines they have in other regions, especially in Asia, to the country.