Low national content of exported manufactures

The national content of Mexican global manufacturing exports accumulated five years of stagnation in 2020 with a slight downward trend, show the figures published yesterday, December 8, by the National Institute of Statistics and Geography (Inegi).

Last year, the Global Manufacturing Export Value Added (VAEMG) stood at 45.2% as a proportion of global manufacturing production, that is, Mexican manufacturing production inserted in global production chains.

This percentage was lower by 0.6 percentage points compared to the level of 45.9% observed in 2019 and is far from the historical maximum of the indicator, observed in 2015, when it had a reading of 47 percent.

“The VAEMG is the value added by the national economy to export products, which are part of a global production process, that is, they are carried out throughout different countries. It also represents the value of the national content that is exported by manufactures in global value chains, “explained Inegi yesterday, disclosing the indicator.

Of the 45.9% of national value in global manufacturing production made in Mexico, around 14.3 points are contributed by intermediate goods of Mexican origin and approximately 31.6 points correspond to gross added value.

Last year, the national content in global manufacturing exports amounted to two trillion 926,962 current pesos, a figure that also represented 20.8% of the value of total manufacturing production.

Inegi explained that the total manufacturing production carried out in Mexico is divided into two segments, the one immersed in global production processes and the one that is not inserted in these processes. In 2020, the first represented 46% of Mexican manufacturing production and the second, 54 percent.

The increase in national content in global manufacturing exports persists as a challenge for Mexico’s industrial policy to generate more national production chains.

From 2010 to 2015, the country managed to improve in this indicator – the VAEMG as a proportion of global export manufacturing went from 41% to 47% – but since the second half of the last six-year term and so far this government has been observed a setback.

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