Public investment impact is below its potential: IP

The Confederation of Industrial Chambers of the Mexican Republic (Concamin) complained to the federal government that having awarded the large infrastructure works – Maya Train, Olmeca refinery, and the Trans-Isthmic Corridor – to the Army has caused a disadvantage in the construction industry and unemployment in the Mexican economy.

José Abugaber, president of Concamin, warned: “if the emblematic works of the government had been placed in the hands of this sector (the industry it represents), the economic benefit would have been more important and would have allowed the generation of thousands of jobs for the benefit of the workers”.

He said that while the manufacturing industry increased its dynamism 5.8% in the first eight months of the year, the construction sector decreased 0.5%, due to the null presence of private investment in Mexico’s infrastructure.

“This means bad news for a sector that is essential for the country’s economic growth,” he said, since it is highly employment-generating and triggers other activities.

The industry leader pointed out that the federal administration only invests a little less than 3% of GDP in infrastructure, when it would have to be at least 5% to fulfill one of its main purposes: job creation.

In this regard, the president of Concamin regretted that the government of Andrés Manuel López Obrador has delayed the presentation of the third infrastructure package, arguing that the progress of the first and second packages is being analyzed.

“It is necessary to accelerate this investment that would allow the construction industry to recover land,” and insisted that the large infrastructure works under the absolute responsibility of the Mexican Army affect hundreds of workers in the construction industry and the construction industry itself, because is at a disadvantage.

Abugaber urged that the strategy be changed next year and that public and private investment be accelerated so that the construction industry has a speedy recovery and is a leading player in the consolidation and economic development of the country.

The president of Concamin pointed out that if car sales in Mexico go up, then the infrastructure on highways, streets and avenues must grow in parallel.

According to information from the National Institute of Geography and Statistics (Inegi), in October 2022 the sale of new vehicles reached 91,101 units, which represented a growth of 18.9 percent compared to those sold the same month last year, with 76,640 cars.

“Everything must go in balance. If the sale of cars in the country grows, it means that people are doing well, but to get around more roads, streets and avenues are required throughout the country, as well as maintaining those that already exist, and all of this requires more investment,” he said.

lilia.gonzalez@eleconomista.mx