Mexico City. The slowdown of the economy in most of the country’s states comes from the weakness of domestic demand, lower growth in formal employment and moderate investment by companies due to the fall in public spending, BBVA México stated.
Carlos Serrano, chief economist of BBVA, said that at the end of 2024, 27 states in the country will have already recovered their growth levels that they had before the pandemic, while Durango, Morelia, Coahuila, Colima and Campeche will continue to lag behind.
“In general, now that the year is very advanced, it is anticipated that there will be significantly less growth than last year, and in that sense, it is not surprising that all states will grow less in 2024 than in 2023.
“We estimate that by the end of this year, 27 entities will have already recovered their GDP level prior to the pandemic and there are exceptions, Durango, Morelia, Coahuila, Colima and Campeche, which we estimate will not recover their level at the end of this year” Serrano said at a conference, when presenting the Regional Sectoral Situation report.
The financial institution anticipated that this year, the entities with the highest growth will be Nayarit, with an advance of 1.9 percent, as well as Hidalgo; Baja California Sur with 1.8 percent and Mexico City with 1.7 percent, while the only entity that will decline will be Campeche, with a contraction of 0.2 percent.
By sectors, the economist stated that next year, even though services will grow the most, less dynamism is forecast in all and only two industrial sectors will grow: construction with an advance of 3.5 percent and manufacturing with one percent. hundred; while mining will contract 0.7 percent, and the industry related to electricity, water and gas will fall 2.1 percent.
“In 2024, the weakness of domestic demand, lower job creation, the fall in public spending and the reduction in demand for durable goods in the United States will be transferred to the state level with marginal growth,” BBVA noted.
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#Economic #slowdown #due #demand #slow #dynamism #BBVA
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