Sustained Momentum: Mexico’s Industrial Production Grows by 2.5% in the First Quarter of 2023

Industrial production in Mexico continues on a positive trajectory, experiencing a 2.5% year-on-year growth during the first quarter of 2023, according to the National Institute of Statistics and Geography (Inegi). This increase is primarily driven by a robust performance in the generation and distribution of energy, as well as the supply of water and gas, which recorded a notable increase of 4.3%.

The dynamism is reflected across all sectors, with notable advancements in manufacturing industries (2.7%), construction (2.1%), and mining (1.7%). March, in particular, was a positive month with a 1.6% increase in industrial production compared to the same period last year.

Electricity generation and water and gas supply led the upturns in March, with a 4% increase, followed by mining (2.2%), construction (2.1%), and manufacturing (1.1%). These figures support the constant momentum in diversifying key sectors of the Mexican economy.

Despite this growth, the Monthly Industrial Activity Indicator (IMAI) experienced a decrease of 0.9% in real terms and seasonally adjusted figures in March, mainly attributed to setbacks in mining (-3.5%) and manufacturing (-1.1%). However, progress was observed in construction (1.3%) and in the generation of electricity and water and gas supply (0.9%).

This industrial production performance is closely linked to the overall health of the Mexican economy. In the first quarter of 2023, the country’s Gross Domestic Product (GDP) showed a year-on-year growth of 3.9% and a quarterly increase of 1.1%, according to preliminary estimates from Inegi.

It is worth noting that in 2022, Mexico’s industrial production experienced a 3.3% annual increase, highlighting the pivotal role of manufacturing and uniform growth across all sectors. This momentum contributed to GDP growth, reaching 3.1% in the same year.

Despite challenges posed by the Covid-19 pandemic, which led to a historic contraction of 8.2% in 2020, Mexico has demonstrated resilience. In 2021, GDP increased by 4.8%, although below government expectations.

Looking ahead, the government projects an economic growth of 3% for the year 2024, solidifying the ongoing recovery of the Mexican economy. Follow our updates on Twitter to stay informed about the most noteworthy information regarding the economic and productive landscape in Mexico.

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