By The Rio Times | Created at 2024-10-30 18:51:08 | Updated at 2024-10-30 21:38:09
2 hours ago
Mexico faces a significant challenge in its infrastructure development. The Mexican Chamber of the Construction Industry (CMIC) suggests that the country needs to double its investment.
This increase is crucial for sustained economic growth in the coming years. The CMIC’s president, Luis Rafael Méndez Jaled, shared some concerning figures.
Public investment in infrastructure fell by nearly 30% in 2024, totaling about 600 billion pesos. This decline is alarming for the construction sector and the economy at large.
In addition, Méndez Jaled stressed the importance of infrastructure investment. He stated that it affects three out of four economic sectors.
The CMIC recommends investing 30% of the Gross Domestic Product (GDP) in infrastructure projects. This is a substantial increase from current levels.
Mexico’s Infrastructure Shortfall Threatens Economic Growth. (Photo Internet reproduction)The chamber also calls for more private sector involvement. In previous administrations, private participation in infrastructure projects was around 70%.
This figure dropped to 60% during López Obrador’s presidency. The CMIC believes that public-private partnerships are key to meeting investment needs.
Challenges and Opportunities
The 2025 federal budget, due by November 15, faces several challenges. These include debt, fiscal deficits, and fixed expenses like social programs.
In addition, the CMIC suggests using development banks, including Banobras, to stimulate private investments. The construction sector had a tough year in 2024.
The end of major federal projects and reduced investment took their toll. According to the National Survey of Construction Companies, production fell by 15.3% annually.
The CMIC estimates that the industry grew by only 1% during López Obrador’s six-year term. This is a stark contrast to previous administrations, where growth reached 1.7%.
In short, the chamber sees some positive signs for 2025, though. New infrastructure maintenance projects are being tendered.
These include road maintenance and works for the Federal Electricity Commission. The CMIC views these as promising developments for the sector’s recovery and growth.
