The Mexican Construction Industry Registered a Compound Annual Growth Rate (cagr) of 4.64% During the Review Period (2009-2013), According to a New Study on ASDReports

Wednesday 3 September 2014, Amsterdam

Growth was largely driven by a change in Public Works Law, new industry and economic policies, and a National Infrastructure Plan (NIP). The industry is anticipated to expand at a CAGR of 4.84% over the forecast period (2014−2018), driven by growth in the infrastructure market in line with government measures to enhance transport infrastructure. Industry expansion will also be driven by an increase in population, government initiatives to support the growth of high value-add industries, and an expected revival in consumer confidence.

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Report highlights
After recovering from the financial crisis, the Mexican construction industry recorded a slowdown of just fewer than 2% in 2013. During the review period, the gross value-added growth in construction peaked at an annual rate of just over 10% (in nominal terms) in 2011, but activity slowed in 2013, and a contraction of just fewer than 2% was registered in 2013. The outlook is different for 2014 as the industry is anticipated to register a value-added growth of just under 4% (in nominal terms) generating 300,000 jobs. The industry is set to grow further, both in 2014 and over the forecast period, due to improved economic conditions, low interest rates and increased investment. With government commitment and investment picking up, the industry is showing signs of positive growth. To increase the annual inflow of tourists, it is important that the Mexican government makes efforts to ensure safety. According to the World Economic Forum’s Travel and Tourism Competitiveness Index 2013, Mexico ranked 121st position out of 140 countries in terms of safety and security. The drug war and associated violence, kidnappings and mass murders have adversely affected the country’s image as a safe destination. The growth in tourism can be attributed only to the country’s improving economic conditions and a rise in industrial activity, which improved employment opportunities, and led to a rise in income and expenditure. This will further support the growth of the leisure and hospitality buildings category over the forecast period.