Mexico’s industry is experiencing a period of sustained growth driven by an increase in domestic demand and an increase in exports at the international level. According to a recent report by the National Institute of Statistics and Geography (INEGI), industrial production in Mexico grew by 4.9% in the last quarter of 2022, compared to the same period the previous year.
This growth has been driven by several factors. Firstly, domestic demand has increased due to higher household consumption and a recovery in business investment. Secondly, Mexican exports have increased due to higher demand in the international market.
Furthermore, the implementation of the T-MEC (the trade agreement between Mexico, the United States, and Canada) has had a positive impact on the Mexican industry by facilitating trade between the three countries. Mexican companies have been able to take advantage of the geographic proximity to the United States to increase their exports and participate in global supply chains.
However, the Mexican industry still faces significant challenges. Inflation has been a persistent problem in the country, leading to an increase in production costs. Additionally, the shortage of skilled workers and the lack of investment in infrastructure have also been obstacles to growth.
In summary, Mexico’s industry is experiencing a period of sustained growth due to higher domestic demand and an increase in exports. While there are still challenges to overcome, it is expected that the industry will continue to grow in the coming years thanks to the implementation of the T-MEC and investment opportunities in the country.
