The construction sector recovers, and inflation has returned to adequate levels!

The Mexican economy has stood out in the past year by exceeding growth expectations for this year. In particular, the International Monetary Fund (IMF) raised the GDP growth forecast for this year to 2.6%, surpassing Brazil (2.1%) and the expected average for the Latin American region (1.9%).

The construction sector, likewise, has had a rapid recovery this year, exceeding pre-pandemic levels in May (see graph 1) and showing a clear trend of achieving an annual growth rate of over 10%.

Additionally, inflation has a clear downward trend towards the target set by the Bank of Mexico (3% ± 1%, see graph 2). This creates a suitable macroeconomic environment for investment in the country, reflected in an appreciation of the peso to levels not seen since 2016.

As a result, in the construction sector specifically, the level of inflation for the industry is already at healthy levels. According to INEGI, the annual National Producer Price Index for the sector stood at 2.18% in June this year, creating a very favorable environment to continue investments in the residential sector and boost nearshoring.

At Soda Capital, we understand that this great opportunity must be seized as quickly as possible, so we can provide you with a flexible bridge loan in 45 days for any type of real estate development.