Before the Covid-19 pandemic, the construction industry in Mexico was already showing a decrease and it is likely that it will end the six-year term without growing, but it would show a very slight recovery at the end of 2022.
In 2020 it decreased by 17.4%, in 2021 it grew by 6.4%, thanks to the opportunities that strengthened its path to recovery in the sector, according to data from the Mexican Chamber of the Construction Industry (CMIC).
Bringing the Third infrastructure package in Mexico in exchange will depend on the progress of the first and second, released in October and November 2020, respectively.
Thus, for "2022, a reactivation of 0.8% is expected, plus or minus one percentage point, considering that the levels of public and private investment will become more dynamic at the end of 2022, with the announcement of the Third infrastructure package."
However, the chamber stressed that the package will be presented until there is further analysis of the level of progress of the works contained in the first and second and the inflationary rise in construction is controlled.
It should be remembered that construction raw materials have presented high costs, along with a shortage due to the current economic context, where the IMF estimates that by the end of 2022 the Mexican economy will slow down.
INEGI figures indicate that consumer prices in Mexico slowed down last October, taking annual general inflation from 8.70 to 8.41% and construction inflation from 12.26 to 11.14 percent.
Mixed investment in the industry
The CMIC highlighted that last August investment in the construction industry increased (3.21 trillion pesos) compared to July (3.20 bpd), but still below pre-pandemic levels.
Investment is also low compared to the last significant increase that occurred in the fourth quarter of 2016, with 3.76 trillion pesos, according to a report this month from the chamber.