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10/16/2018
Country risk and economic studies

Country Sector Summary - Construction Mexico

Country Sector Summary - Construction Mexico

The sector in Mexico faces some risks in the short term. Its activity has been impacted by a tighter public budget, which prompted the reduction of public works. The latter has shrunk for the last 27 months in a row.

 

In parallel, limited public resources have also negatively impacted the part of residential construction that relies on government subsidies. Moreover, since December 2015 the central bank has raised interest rates in response to sticky inflation and the gradual tightening monetary cycle in the US.

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