Mexico’s Industrial Production Grows by 0.7% YoY in April

Mexico’s industrial production witnessed a 0.7% year-on-year growth in April, driven primarily by the mining sector, according to the National Institute of Statistics and Geography (Inegi). The increase was attributed to the YoY rise in mining (1.9%), manufacturing (1.4%), and electricity generation, transmission, and distribution, along with water and gas supply (0.6%), despite a decline in construction (-2%).

In the first four months of 2023, Mexico’s industrial production registered a 2% YoY growth, propelled by higher electricity and water/gas supply (3.3%), manufacturing (2.4%), mining (1.8%), and construction (1%).

Meanwhile, the monthly indicator of industrial activity (IMAI) recorded a 0.4% real increase, seasonally adjusted, in April compared to the previous month.

However, there were monthly declines in electricity generation and water/gas supply (-2%) and construction (-2%).

These figures reflect the performance of Mexico’s economy, with its gross domestic product (GDP) expanding by 3.7% YoY and 1% quarterly in Q1 2023, as per Inegi’s definitive data.

Mexico’s industrial production grew by 3.3% annually in 2022, driven primarily by manufacturing and across all sectors.

In 2022, Mexico’s GDP increased by 3.1%, supported by growth across all sectors, while in 2021, it rose by 4.8%, falling short of the government’s expectations.

Mexico was among the Latin American countries that experienced a slower recovery of its GDP following the COVID-19 pandemic, which caused a historic contraction of 8.2% in 2020.

For 2024, the government estimates Mexico’s economy to grow by approximately 3%.