Industrial production in Mexico experienced a 15% decline in December and has accumulated ten consecutive months of contraction. Meanwhile, the consumption of imported goods has shown an annual growth of 7%, reaching a total of 50%. Compared to the year 2019, approximately the same number of units is currently produced.
In the automobile sector, sales increased by nearly 6% in January, but production only grew by 2%, and exports fell by 14%. In the last six months, there has been a 15% growth in domestic transportation equipment production and a 16% growth in imported equipment.
Retail sales decreased by 10%, exports by 7%, and wholesale sales contracted by 30%. The industrial activity index closed the year with a decline of -2.4%, averaging a scant 0.5% annually.
In a broader economic context, total growth is around 1% annually until the third quarter of 2024, while imports have experienced a growth of 2.3%. The Mexican economy is being affected by the lack of growth in production and the increase in imports.
Amid this situation, investment in machinery, both domestic and imported, has been low, with an average annual growth of domestic goods consumption of 0.9% in the last six years and services consumption by 1.3%. Gross fixed investment has stagnated at an average of 0.2% in the last six months.
The situation is aggravated by the decline in growth in the production of heavy vehicles, which recorded a drop of 9.5% in January compared to the previous year, despite being close to reaching four million units produced annually. The growth in the production and sales of vehicles is one of the few positive indicators in an economic environment of slowing down that is already considered a recession.
Despite the increase in the acquisition of cars and trucks, the Mexican economy faces significant challenges, such as the decline in construction and the rise in imports to the detriment of domestic production. The government is limited in its tools to reverse the economic situation and faces criticism for its management.
