In 2021, physical investment spending recorded a 0.2% increase over the previous year, by registering resources for 691,796 million pesos, according to information released by the Ministry of Finance and Public Credit (SHCP).
Although the physical investment was higher than the levels recorded before the Covid-19 pandemic, the amount is far from what was seen, for example in 2014 when 819,940 million pesos were exercised (figures from 2021). investment.
Treasury data show, on the one hand, that the energy sector and the supply, drinking water and sewage sectors were the two items where physical investment grew by double digits. In the first of these, the annual rate growth was 22.2%, while in the second it was 17.7 percent.
Meanwhile, physical investment in education fell by 29.5%, while 29.2% in health and other types of investment (such as those of the autonomous, administrative and general branches) showed a decrease of 13.7 percent.
On the other hand, the energy sector is observed to be the one concentrating 44.6% of investment spending. Last year, 308,647 million pesos were allocated to physical investment spending in this category, of which 267,384 million went to the hydrocarbon sector and 41,263 million to the electricity sector.
Impact on growth
A depressed physical investment has an impact on the country’s economic growth, as this expenditure could boost the conditions for greater sources of employment, analysts have pointed out.
José Luis de la Cruz, director of the Institute for Industrial Development and Economic Growth (IDIC), indicated that less physical investment than in other years – even with certain priority projects underway – is bad news for the economy. , because the growth potential is inhibited and that construction companies can benefit from the generation of infrastructure.
In this regard, he added that spending on physical investment is essential for any country to have foundations for economic growth and development, as well as to help balance development between regions.
“The usual problem in a country like Mexico is that significant investment flows are needed and that we are struggling to grow. And we do not grow for the same reason, because it is a vicious circle, where if there is no physical investment, we do not grow. We need to at least increase the investment item and represent 5% of GDP, but that is not happening and it is limiting our growth, ”said James Salazar, Deputy Director of Economic Analysis at CIBanco.
Reference-www.eleconomista.com.mx