Caintra Nuevo León foresees a slowdown in national and state GDP, with a decrease in jobs

Monterrey, NL. The Chamber of the Transformation Industry (Caintra) from New Lion considered that a slowdown in the Gross Domestic Product (GDP) is expected in 2023, given external and internal factors that prevent a broader development of economic activity.

“We can mention high inflation, the increase in interest rates, and the possible recession in the United States, as well as the lack of certainty to increase private investment, among others,” said Rodrigo Fernández Martínez, president of Caintra Nuevo Lion.

For example, he said that high inflation has not only impacted the purchasing power of consumers, but has also disrupted the production chains of different productive sectors.

The industrial sector will continue to face rising costs during 2023, where we expect general inflation of 5%, above the Banco de México target”.

These factors against will have the effect that the country’s economy grows around 1% in 2023. “New Lion would not be exempt from this lower activity, growing only 1.5%, while the manufacturing industry would do so at 2.5%”, emphasized the leader of To install Cainta.

This economic slowdown will have an impact on the population, reducing employment opportunities, and it is estimated that only 400,000 additional formal jobs would be generated in 2023. “In the case of Nuevo León, the figure would also be reduced with about 50,000 new jobs,” stressed.

In 2022 dynamic activity

Economic activity this year has been higher than expected due to the dynamism of the United States and the control of the Covid-19 pandemic. The growth expectation is that by the end of this year, the national GDP increase 2.7%, while the GDP of Nuevo León would grow more than 3 percent.

The president of Caintra Nuevo Leon, Rodrigo Fernández, pointed out: “For 2022 our growth expectation is that the GDP of Mexico will increase 2.7%, while that of Nuevo León exceeds this figure with more than 3%. The national manufacturing sector would have an increase of 4% in production at the end of the year, while in Nuevo León we would be very close to 5 percent”.

He emphasized that the business sector has generated more than one million formal jobs this year, of which Nuevo León contributed 10%, making it the fourth state with the most jobs created in the country, after Mexico City, Jalisco and the state from Mexico.

makes a call

Caintra made a call to strengthen the Mexican economy, which is already suffering from external and internal pressures. Expectations can still change and many opportunities lie ahead, if we do the right thing.

Rodrigo Fernández proposed to focus on:

• Generate a true and profound policy of support for micro, small, and medium-sized enterprises, through financing for working capital and investment, capacity building, as well as an effective link with global value chains.
• Eliminate, simplify and digitize all possible procedures for the productive sector.
• Promote investment in the country. Mexico needs legal certainty to trigger investments and attract all those that are being generated by the nearshoring phenomenon. Therefore, mobility works, access to water, electricity generation and transmission, among others, are necessary.

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