Mexico is one of the largest and most dynamic economies in Latin America. Despite the different economic and political circumstances, Mexico continues to be an attractive destination for foreign investment, thanks to its strategic location and highly-skilled workforce. At the end of 2022, the Mexican economy grew 3.0% compared to 2021. According to the Estimación Oportuna del PIB (INEGI). Find out which are the economic sectors in Mexico with the highest growth in recent years.
What are the economic sectors?
The economic sectors are the result of the division of the different activities that contribute to the growth and development of the country. The economic sectors of Mexico are traditionally divided into three main categories:
Primary sector
This sector includes activities related to the production and extraction of natural resources to obtain raw materials that will be used by the secondary and tertiary sectors for the manufacture of products and commercialization of services such as:
- Agriculture
- Cattle raising
- Fishing
- Mining
- Forestry
Secondary sector
This sector focuses on transforming raw materials into finished products. By requiring additional work to be able to give a specific use to the raw materials, the products obtained have an added value, due to the investment in the hours worked, the use of machinery and resources such as water and electricity. The activities are:
- Manufacture
- Electronic, automotive, aerospace, food, chemical and textile industries
- Construction
- Energy generation
Third sector
This is the sector focused on the distribution and commercialization of the provision of services to society. Some examples of tertiary activities in Mexico are:
- Tourism
- Banking and financial services
- Trade
- Education
- Communications
- Transport and logistics
- Health
- Information technology
- Investigation and development
What are the economic activities with the highest growth in Mexico?
Manufacturing Industry: One approach to improving the Mexican economy is to strengthen it by increasing investment in infrastructure for mechanical, physical, or chemical transformation of materials or substances to obtain new products. The manufacturing industry represents about 18% of the country ‘s GDP. Despite the challenges posed by the pandemic, this industry continues to grow and has driven much of the economic recovery in Mexico, maintaining growth since 2020. The manufacturing sector in Mexico has benefited from the growing demand for high-quality and low-cost products from consumers worldwide. Additionally, the Mexican government has implemented policies to encourage foreign investment and job creation in this sector. Mexico has become an important production center for many industries, including automotive, electronics, textile, and food and beverage.
The automotive industry in Mexico has experienced notable growth in recent years, largely due to two factors: increased foreign investment and rising demand for cars in both domestic and export markets. In particular, the nearshoring trend – the practice of bringing production closer to home markets – has driven demand for Mexican-made vehicles in the United States, Canada, and other nearby countries. Furthermore, the industry has been boosted by the growing popularity of electric and hybrid vehicles, which has led to increased production of these types of cars in Mexico.
Construction Industry: This industry has become crucial for the country’s development and has experienced significant growth in Mexico in recent years. The Mexican government has undertaken major infrastructure projects, including the construction of new roads, bridges, airports, and ports. The construction industry is one of the sectors that generates the most employment and is a key indicator of the country’s economic growth. According to data from the Secretariat of Agrarian, Territorial and Urban Development (SEDATU), in 2020 alone, the construction sector employed approximately 7.3 million people in the country.
Regarding foreign investment in the construction industry in Mexico, the country has received direct foreign investment in this sector, resulting in significant growth of 2.7% in 2022. This growth provides opportunities for construction-related businesses, such as building material manufacturers and construction equipment suppliers, to expand their customer base and increase sales. Moreover, the government’s commitment to infrastructure development and foreign investment in the sector offer a positive outlook for the construction industry in Mexico in the years to come.
At VYNMSA we know that these industries need the necessary operational efficiency to continue generating growth in the country’s economy. We are prepared to offer the best comprehensive solutions for companies seeking to establish themselves and produce in Mexico. We have been working with the best national and international clients for 29 years, offering them the best solutions at the level of industrial real estate developments in Mexico. Our industrial real estate offer has 20 industrial warehouses, custom projects (build to suit), and 36 strategic industrial locations for the growth of your company. Contact us and start transforming the economic development of Mexico with the best support for your operations!
