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Mexico’s top 10 industries by exports

Transportation equipment manufacturing ranked first among Mexico‘s top industries by exports in the first quarter of 2022, according to Inegi data.

This subsector reached exports worth $40.744 billion dollars in the first quarter of the current year, a year-on-year increase of 10.1 percent.

This was followed by the manufacture of computer, communication, mediation and other electronic equipment, components and accessories, with 20,545.2 million dollars and an increase of 28.6% year over year.

Oil and gas extraction obtained the third position, with 7,090.8 million dollars, an amount 46.8% higher at annual rate.

In particular, low private sector investment in Mexico threatens to hinder recovery and reduce long-term growth potential, according to a report by the U.S. Treasury Department.

Exports by subsector of economic activity: first quarter 2022

Fuente: Inegi.The Treasury Department argues that Mexico’s costly support for increasing the market dominance of loss-making state-owned energy companies drains public resources for essential spending and discourages investment in renewable energy that would reduce user costs and free up fiscal space for more productive investment and social protection.

Consequently, he adds, to the extent that U.S. net energy exports to Mexico may decline as a result of Mexico’s policy goal of greater independence from fossil fuels, Mexico’s trade surplus with the United States may increase.

Top industries

By exports, other notable subsectors were: manufacture of electrical accessories, appliances, and electric power generation equipment; manufacture of machinery and equipment; other manufacturing; agriculture; basic metal industries; chemical industry; and food industry.

Mexico had an estimated budget deficit of 3.3% in 2021, a rate that should remain stable in 2022 and 2023, at 3.2 and 3%, respectively, according to a Santander assessment.

Spending priorities include social programs, the creation of the National Guard to fight rising crime, and new funds to support Pemex, whose rating was downgraded by Fitch due to uncertainty around its future strategy and financial stress.

The sector is critical to the Mexican economy, as oil production accounts for one-third of government revenues.

 

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