Gross fixed investment in Mexico rose 0.1% in January: Inegi

gross investment in fixed capital from Mexico rose 0.1% in January compared to the same month of the previous year, reported this Wednesday National Institute of Statistics and Geography (Inegi).

This monthly growth was driven by investments in construction, which increased by 0.3%, although it was slowed by a decline mechanisms and equipment 0.2% per month.

According to the Monthly Index of Gross Fixed Capital Formation (IMFBCF), year-on-year gross fixed capital investment increased by 13.8% in real terms.

Based on initial figures, Inegi indicated that this result was achieved last year thanks to annual progress of 21.2% in construction and 6% in machinery and equipment.

According to expenditures on machinery, equipment and new construction, they reached 15.3% in year-to-year comparison for January due to growth in construction (20.8%) and machinery and equipment (9.7%).

In the first month of the year, private investment grew by 16.3%, while government sector increased by 7.8% year-on-year.

Numbers reflect behavior economy Mexico, which grew by 3.2% in 2023, driven by all sectors, as Inegi showed last February.

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Additionally, Mexico received a record foreign direct investment (FDI) of over US$36 billion in 2023, representing an annual increase of 2.2%.

Mexico’s gross fixed investment grew 6% annually in 2022, driven by increased production of machinery and equipment.

While it rebounded 10% year-on-year in 2021 after going through the worst phase of the coronavirus pandemic, resulting in an 18.2% decline in investment in 2020.

According to Inega, gross fixed investment allows us to know the behavior of investments in the short term and consists of goods used in the production process for more than one year and to which property rights apply.