Let's get busy
Mexico’s construction industry is currently in a growth period, but the past three years have been difficult for the sector. By August of 2010 the industry had posted 24 straight months of contraction. As the U.S. economy rebounded in 2010 and investment plans in Mexico were gradually reactivated, construction returned to growth in August 2010 and registered robust expansion through December, balancing out at en even 0.0% growth for the year. After a strong January, the rate of growth has slipped through the first half, most recently posting a tepid but nonetheless somewhat improved 2.4% annual rate in May. The National Statistics Institute (INEGI), however, reported overall growth of 4.6% in June 2011 with respect to the previous year, resulting in increased demand for inputs such as electrical materials, paints and coatings, cement, metallic structures, sand and gravel, asphalt, concrete and other steel and iron materials. Read the rest of this entry »
As the U.S. economy doggedly continues to send mixed signals, events in the Middle East have the world biting its fingernails and Mexico’s internal problems capture headlines, the Mexican economy inexplicably appears to be doing better than it should. While weak points are numerous, positive signs still accrue: Official unemployment was set at 4.6% in March, the lowest level since December 2008. First quarter results brought indications of a revival of the domestic market, as heavy truck sales jumped 43% over 1Q10, auto sales rose 12% for the same period, and retail sales edged up over 1Q10 as well. The peso continued to pummel the dollar, with gains of 6.8% so far this year, but despite this exports have been strong. Exports of electric and electronic goods were up 16% through the first two months of the year over the same period in 2010, and interestingly, exports of pork to Japan are running 30% ahead of last year despite – or because of? – the earthquake and tsunami catastrophe. The IMF provided a rare moment of satisfaction for Mexican authorities this month by upgrading its GDP projection for the country to 4.6% for the current year – just slightly above the projection for Brazil, the heralded BRIC economy and Mexico’s archrival in Latin America. These details, of course, don’t by themselves add up to a shining panorama of unbridled optimism. But considering the unprecedented levels of violence brought on by the drug wars, you’d kinda think things would be going worse than they are economically. Let’s see what we’re saying about this topic a few months from now.
