Sustained growth of the Mexican economy 2023/11/07

To continue the momentum of economic growth in a complex global environment, the public policies promoted by the administration of our president Andrés Manuel López Obrador have sought to preserve the sustainability of public debt through moderate fiscal deficits, strengthen the austerity policy within the federal public administration and work to maintain solid macroeconomic balances. Likewise, spending on development and social protection continues to grow, and has been reinforced improvements in the workplace, prioritizing the well-being of families and supporting household consumption.

A positive performance of the Mexican economy has been observed based on the strength of the internal market that has been supported by the constant creation of jobs and wage increases, as well as by the reduction of inflation, which has contributed to the purchasing power of the families. As an example, last week, Inegi presented the Timely Estimate of the Quarterly Gross Domestic Product, which offers a short-term vision of the evolution of the country's economic activities.

In the third quarter of 2023, the results of the Timely GDP Survey report an increase of 0.9% in real terms, compared to the immediately previous quarter. At a quarterly rate, the timely Gross Domestic Product of primary activities advanced 3.2%; that of secondary schools, 1.4% and that of tertiary schools, 0.6% in the third quarter of 2023. While, at an annual rate, the timely estimate of GDP rose 3.3% in real terms; By economic activity, the variation was: primary activities increased 5.3%; secondary schools, 4.5% and tertiary schools, 2.5%. In the first nine months of 2023 and with seasonally adjusted series, the timely GDP increased 3.5% at an annual rate.

Likewise, in the most recent Report on the Economic Situation, Public Finances and Public Debt for the third quarter of 2023, the SHCP reported that, in the month of September, budget revenues increased 3.6% real annually, driven by a increase in tax collection of 22.3%, the largest increase since 2015 for the same month. Internally, the ISR grew 4.8% compared to what was observed in September 2022, while the total collection of the IEPS was 2.6 times greater.

In the accumulated period between January and September, budget revenues remained constant in real terms, despite lower oil revenues. Tax collection grew 9.1% real annually, the highest increase since 2016 and higher than the average of the last decade.

Internally, it was highlighted that the ISR grew by 3.7%, adding four consecutive years of increase; These positive results are attributed to strong economic performance, reflected in high levels of employment, higher wages, and favorable corporate profits. While spending on social development grew 7.4% real annually, the highest increase since 2014; Inside, the areas of social protection, housing and education registered growth of 8.9, 17.0 and 6.7%, respectively.

In summary, the Mexican economy continues on a path of sustained growth, thanks to the strength of employment, the increase in real wages and the constant increase in domestic demand.

The strategic allocation of resources of the Fourth Transformation government has, without a doubt, had a direct impact on economic growth and the well-being of the population.