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Michoacán leads Mexico’s agricultural exports in 1Q22

Michoacán led agricultural exports among all Mexican states in the first quarter of 2022, reported Inegi.

Michoacán’s agricultural exports amounted to 1,384.6 million dollars in the first quarter of this year, which represented a 12.5 percent year-on-year increase.

Thus, Michoacán accounted for 30.9 percent of Mexico‘s agricultural exports.

Among the products exported by Michoacán are figs, pineapples, avocados, guava, mangoes, strawberries and other red fruits.

Michoacán

In Michoacán, the municipalities with the highest level of international sales in 2021 were Uruapan (US$2.211 billion), Jacona (US$308 million), Peribán (US$307 million), Zamora (US$291 million) and Morelia (US$236 million).

Other leading states in agricultural exports in the first quarter of 2022 were Sinaloa, Baja California, Sonora and Guanajuato.

In the big picture, the geopolitical turmoil stemming from the war in Ukraine has generated a new source of uncertainty for the Mexican economy.

Although trade and financial ties with the countries in conflict are weak, Mexican exports would be indirectly affected, mainly through the U.S. economy, according to the Organization for Economic Cooperation and Development (OECD) outlook.

Global commodity price increases also add to existing inflationary pressures.

Tax relief measures and generalized tax credits are cushioning the impact of rising energy prices.

In addition, the OECD believes that rising interest rates in global financial markets will increase Mexico’s sovereign financing costs.

GDP

The OECD forecasts that the Mexican economy will grow 1.9% in 2022 and 2.1% in 2023.

While domestic consumption will be a key driver of growth, while tourism-related services will gradually recover, exports will continue to benefit from deep integration in value chains.

Furthermore, the OECD expects inflation in Mexico to rise in 2022 and gradually decelerate in 2023, as the impact of rising interest rates takes effect and ample spare capacity limits wage pressures.

However, the inflation outlook remains highly uncertain. Inflation could stay higher for longer, eroding purchasing power, particularly for vulnerable households, and requiring further monetary policy tightening.

 

Redacción Opportimes

 

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