FOCUS | MEXICO
Mexican spring? Growth after stagnation
The Mexican construction industry, despite shrinking over the past year, is expected to recover over the next five years with investments in energy and transport, and rising foreign direct investment. OCH takes a closer look.
Mexican relations unsettling investors, weaker remittances flows and elevated building material costs. According to the National Institute of Statistics and Geography (INEGI), the construction industry’s value-add declined by 4.7% year- on-year (YoY) in Q3 2025, preceded by YoY declines of 2.2% in Q2 2025 and 1.4% in Q1 2025. According to the INEGI, the gross fixed investment on buildings fell by 6.7% YoY in the first nine months of 2025, preceded by an annual growth of 3.2% in 2025. Despite economic uncertainty, Mexico’s construction industry is expected to recover at an annual average growth rate of 2.6% between 2026 and 2029, supported by investments in energy and transport infrastructure projects,
T
he construction industry in Mexico is estimated to have shrunk by 3.6% in real terms in 2025, defined by fractured US-
in line with the government’s plan to invest MXN1.2trn ($60.1bn) to develop 5,645km of railway line across 24 states by 2030. Rising foreign direct investment (FDI) in the country will also support the industry’s output over the coming quarters. According to Secretary of the Economy Marcelo Ebrard, FDI grew 15% YoY in the first nine months of 2025. Additionally, in November 2025, the government announced the development of six new industrial parks with a total investment of MXN3.5bn ($175.3m). It will expand industrial infrastructure in the municipalities of Tultitlán and Tultepec, thereby strengthening one of Mexico’s most active and strategically located manufacturing corridors. Furthermore, the construction of industrial hubs and parks would support the growth in the construction industry. As of October 2025, 103 new industrial parks were under construction,
representing an investment of MXN121.8bn ($6.1bn), up 12.1% from 2024. Of the total, 63% is allocated to new park development according to the Mexican Association of Private Industrial Parks (AMPIP). Growth will also be supported by the National Electric System Strengthening and Expansion Plan 2025–30, announced in April 2025. The plan includes an investment of MXN624.6bn ($31.3bn) to add 29.1GW of new electricity generation capacity. It will fund 158 transmission projects and complete 42,221 electrification projects by 2030. Also in March 2025, the government announced plans to incorporate 8.4GW of Battery Energy Storage Systems (BESS) by 2028. Furthermore, in August 2025, the Mexican government announced a plan to invest MXN164bn ($8.2bn) in the National Transmission Network. This initiative, part of the 2025–2030 Strategic Plan for
8 Spring 2026 |
ochmagazine.com
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