Mexico’s gross fixed investment grows by 18.8% year-on-year in the first half of the year

MEXICO - Mexican gross fixed investment grew by 18.8% year-on-year in the first half of 2023, driven in particular by the machinery sector, the National Institute of Statistics and Geography (Inegi) reported.

This result from January to June was due to annual advances of 17.9% in construction and 19.9% in machinery and equipment, detailed the autonomous institute based on original figures.

Considering only June, gross fixed investment grew by 28.8% year-on-year due to the increase in construction (37.1%) and machinery and equipment (20.5%).

On the other hand, according to seasonally adjusted data, gross fixed investment rose by 3.1% compared to the previous month.

This was a combination of monthly increases of 4.2% in construction and 2.1% in machinery and equipment.

The figures are a reflection of the performance of Mexico's economy, which grew by 3.6% year-on-year and 0.8% quarter-on-quarter in 2Q2023, according to final figures released by Inegi.

Mexican gross fixed investment grew by 6% annually in 2022 due to the boost in machinery and equipment.

While in 2021 it had a 10% year-on-year rebound after passing the worst stage of the coronavirus pandemic, which caused a contraction of 18.2% in investment in 2020.

According to Inegi, gross fixed investment provides insight into the behavior of investment in the short term.