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Mexico Construction Industry Report 2022: Mexico Expanded by 7.2% in Real Terms in 2021 Following a Sharp Contraction of 17.6% in 2020 - Forecast to 2026 - ResearchAndMarkets.com

·4 min read

DUBLIN, May 19, 2022--(BUSINESS WIRE)--The "Mexico Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Mexico expanded by 7.2% in real terms last year, following a sharp contraction of 17.6% in 2020.

The industry's growth in 2021 was supported by an improvement in the domestic economy, the re-opening of key industries and progress in the country's vaccination drive.

According to the National Institute of Statistics and Geography (INEGI), the construction production volume index grew by 7.7% year on year (YoY) in the first 11 months of last year, with specialized construction works, building construction and civil engineering work registering Y-o-Y growth of 16.5%, 6.7% and 3.4%, respectively, during that period.

The industry is expected to expand by 5.4% in real terms this year, before stabilizing to an annual average growth rate of 2.3% between 2023 and 2026. Despite recovering from the sharp contraction witnessed in 2020, the Mexican construction industry is only expected to return to pre-pandemic levels by 2025.

In November 2021, the Chamber of Deputies approved the Federal Expenditure Budget (PEF) for 2022. This budget includes an expenditure of MXN7.8 trillion ($384.6 billion) this year, marking an 8.6% increase in real terms, compared to the budget of 2021. The budget includes significant allocations for certain projects and programs, which is expected to support the industry's growth this year.

The government allocated MXN62.9 billion ($3.1 billion) for the Mayan Train project, MXN45 billion ($2.2 billion) for the Dos Bocas refinery project, MXN24.4 billion ($1.2 billion) for the construction and maintenance of communication routes and hydraulic projects, MXN11 billion ($542.4 million) for the Felipe Angeles International Airport (AIFA) project and MXN10 billion ($493.1 million) for the Comprehensive Program of the Isthmus of Tehuantepec, a railway and port project.

Growth over the forecast period will also be supported by investments in transport, electricity, residential, Liquefied Natural Gas (LNG) and telecommunication infrastructure projects. In early February 2022, the Ministry of Finance reported that the country is currently preparing a multibillion-dollar infrastructure package with private companies, and is stepping up efforts to attract American investments to revive the stagnant economy.

Previously, in late 2020, the president and the private sector announced two infrastructure investment packages, which involve a combined investment of MXN526 billion ($24.5 billion) on 68 projects. Despite the strong pipeline of projects, a downside risk to the industry's outlook could arise due to the rise in inflation, which consequently forced Banxico (Central Bank of Mexico) to raise interest rates, curtailing domestic and foreign demand.

Scope

  • Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Mexico, featuring details of key growth drivers

  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline

  • Listings of major projects, in addition to details of leading contractors and consultants

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

  • Outlook

  • Latest news and developments

  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.3 Industrial Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.6 Institutional Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.7 Residential Construction

  • Outlook

  • Project analytics

  • Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/gkuqk6

View source version on businesswire.com: https://www.businesswire.com/news/home/20220519005865/en/

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