Nearshoring investments in Mexico are already a reality, says the OECD

In March, fixed investment in Mexico had an annual growth of 8.8%; its best level since April 2019, reported the Inegi on Monday, June 5.

“There is also anecdotal evidence that demand for industrial parks, especially in border regions, is relatively high,” added the OECD senior economist at the Latin America press conference for his Economic Outlook.

Better forecast for the economy

The OECD improved its forecasts for the growth of the economy, and nearshoring was one of the reasons, also better than expected results in the first quarter of 2023.

“Basically the main reason for the first change from our previous forecast in February, is that basically we have new data and the first quarter has been much more positive than expected that 1%,” he explained.

In the first quarter, the economy grew 1% annually, according to Inegi figures. The outlook for the Mexican economy for 2023 from the OECD, in February, was 1.8%, today it announced that it adjusted it to 2.6%, and for 2024 it expects it to grow 2.1%.

“We have maintained our vision of what is going to happen in the rest of the year, in 2024, the first data, so positive, has made us increase the growth forecast to 2.6% this year, we continue to see the domestic economy relatively strong in 2023 and 2024”, concluded the senior OECD economist.