RELEVANT NEWS

Mexican Capital Goods Imports Hit Record High Driven By Nearshoring

Mexico broke a record in its imports of capital goods, by capturing 5,001.7 million dollars in May, a year-onyear increase of 24.1%, Inegi reported on Tuesday.

With this, the country accumulated 28 consecutive months of growth in this indicator, 27 of which with double-digit rates, contrasting with the immediately preceding period of 24 continuous months of declines, and of these 19 with double-digit rates.

It also meant that Mexico surpassed, for the first time, the level of 5 billion dollars in a single month.

Capital goods are durable, man-made items that companies use to produce goods and services. Tools, machinery, buildings, vehicles, computers, and construction equipment are types of capital goods. An increase in capital goods orders and shipments is a sign that businesses expect more demand and that the economy will grow.

In the first five months of the current year, Mexico imported US$22.611 billion worth of capital goods, a value 22.2% higher than the same period in 2022.

At first glance, the Mexican economy has benefited from relocation, attracting alternative productive capital to Asia, and as these investments grow, Mexico’s productive base, largely tied to international trade, increases.

Already as a whole, Mexican imports of goods totaled 52,934.5 million dollars last May, an increase of 1.4%, while exports totaled 52,860.4 million, advancing 5.8%, at annual rates.