The decrease in economic activity has been reflected in various regions of Mexico, especially in the central and northern parts of the country. This situation has gone hand in hand with the weakening of key services such as tourism and commerce.
According to the Bank of Mexico (Banxico), business executives have identified several risks that could affect regional economic growth in the next twelve months. These include a possible worsening of public safety indicators, potential policies that the United States may implement, and a decline in public investment in infrastructure at both the state and federal levels.
The uncertainty generated has had a widespread impact on businesses in the country, pointing to a moderate expansion of regional economies. Alejandrina Salcedo Cisneros, general director of Economic Research at Banxico, highlighted that this uncertainty has complicated investment decisions for companies across different sectors and regions.
In the fourth quarter of 2024, the weakness of economic activity at the national level deepened, with a significant contraction compared to the previous quarter. According to Banxico, an economic contraction is expected across all regions of the country, with a national drop of 0.6 percent in the fourth quarter.
The impact of uncertainty has been evidenced in the activity of the interviewed companies, being a factor that contributes to lower internal and external demand. Additionally, it is noted that manufacturing production in the United States has been weak, which has also influenced Mexico's economic situation.
The risks identified by executives from different regions include, among others, investment conditions in infrastructure, both locally and internationally. The importance of generating favorable conditions for private investment and strengthening internal sources of growth in a complex and uncertain environment is emphasized.
In this context, significant challenges persist for the growth of regional economies in Mexico. It is essential to continue promoting infrastructure construction and creating conducive conditions for investment, in light of the risks posed by business executives and the uncertainty currently facing the country.
