National statistics agency reports 3% economic growth for 2022

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January 31, 2023

A woman at work in a vehicle manufacturing plant in Guanajuato. — Manufacturing outperformed other sectors in annual performance.

The Mexican economy grew for a second consecutive year in 2022 after the COVID pandemic and associated restrictions caused GDP to fall sharply in 2020.

The national statistics agency INEGI reported Tuesday that GDP expanded 3% in annual, seasonally-adjusted terms last year, a figure just below the International Monetary Fund’s forecast of 3.1% growth.

The figure is based on preliminary growth data for the fourth quarter of 2022 and is thus subject to change when final data is published on Feb. 24.

The economic expansion in 2022 followed 5% growth in 2021 as GDP rebounded from an 8.5% contraction in 2020.

Gabriela Siller, director of economic analysis at Banco Base, said that the 3% growth recorded last year shows that the economy has fully recovered from the COVID-induced economic crisis.

Alfredo Coutiño, director for Latin America at Moody’s Analytics, said in a note that the Mexican economy “didn’t disappoint in 2022, since it performed better than expected.”

Mexico's central bank building — The central bank raised interest rates to record highs in 2022 to rein in high inflation.

The 3% growth occurred against an economic backdrop of persistently high inflation and record-high interest rates as the Bank of México tightened monetary policy in an attempt to put downward pressure on soaring prices.

Nearshoring – the relocation of companies to Mexico to be close to the United States market – benefited the economy in 2022, but growth could have been even higher if the phenomenon was taken advantage of more fully , according to Siller.

Deputy Finance Minister Gabriel Yorio said Monday that consumption and private investment benefited the economy in recent months, and predicted that higher wages and improved labor conditions will aid growth this year.

INEGI’s preliminary data for the fourth quarter of 2022 showed that GDP expanded 0.4% compared to Q3 and 3.6% compared to the final three-month period of 2021. The former figure indicates a slowdown, as quarter-over-quarter growth was 0.9% in Q3.

Nevertheless, GDP has now increased during five consecutive quarters.

The agriculture sector fueled the Q4 growth with a 2% quarter-over-quarter increase in economic activity and a 6.3% increase in annual terms. However, the manufacturing sector outperformed the agriculture and services sectors during the entire year, recording 3.2% annual growth. The agriculture and services sectors expanded 2.8% and 2.7%, respectively.

avocado processing plant — Agriculture led Q4 growth in 2022, according to INEGI data. (Gob MX)

In view of the latest data, the possibility that stagflation – high inflation, low growth and high unemployment – will afflict the economy has been “practically eliminated,” Janneth Quiroz, deputy director of economic analysis with the Monex financial group, said on Twitter.

A slowdown is predicted in 2023 amid challenging global economic conditions, but Mexico is not expected to go into recession.

The International Monetary Fund on Monday lifted its forecast for 2023 GDP growth in Mexico from 1.2% to 1.7%, while the World Bank is currently predicting a 0.9% expansion “as restrictive monetary conditions, stubbornly high inflation, and softer exports curtail activity.”

The federal government has a more optimistic outlook, predicting 3% growth in 2023.

With reports from El Financiero, El Economista, Bloomberg and Reforma

PRD names 2 ‘strong’ presidential candidates for Va por México ticket

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MND Staff

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January 31, 2023

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PRD leader Jesus Zambrano, left, with Senator Miguel Ángel Mancera, ex mayor of Mexico City — Democratic Revolution Party (PRD) President Jesús Zambrano, left, at a party meeting in México state on Friday. Seated next to him is former Mexico City mayor and current senator Miguel Ángel Mancera, one of two politicians Zambrano said the PRD would put forward as pre-candidates for the 2024 presidential election. (Photos: Crisanta Espinosa Aguilar)

The leader of the Democratic Revolution Party (PRD) has declared that the leftist party has two “strong” contenders to represent the opposition coalition at the 2024 presidential election.

PRD president Jesús Zambrano told a press conference Sunday that former Mexico City mayor Miguel Ángel Mancera and ex-governor of Michoacán Silvano Aueroles are interested in representing the Va por México alliance, which announced in mid January that it would field a common candidate at next year’s election.

The coalition is made up of the conservative National Action Party (PAN), the once-omnipotent Institutional Revolutionary Party (PRI) and the PRD, which President López Obrador represented at the 2006 and 2012 presidential elections.

Despite claims that the PRD has no suitable candidates, “we have two people,” Zambrano said, explaining that both Mancera, mayor of the nation’s capital from 2012–18 and currently the PRD’s leader in the federal Senate, and Aureoles, who completed his six-year governorship in late 2021, were preparing to participate in the process to find a Va por México candidate.

“Silvano Aureoles told me first, and yesterday at the … [PRD meeting in México state] … Senator Miguel Ángel Mancera declared his intention to start mobilizing to seek the candidacy. They’re both strong candidates,” he said.

Zambrano made it clear that the PRD didn’t currently intend to contest the presidential election on its own, despite his anger over an agreement between the PAN and the PRI that will see the first of those two parties run the candidate selection processes for the 2024 presidential and Mexico City mayoral elections.

Former Michoacan governor Silvano Aureoles — Former Michoacan governor Silvano Aueroles also attended the PRD meeting on Friday. Zambrano said both Aueroles and Mancera are viable candidates for the Va por México ticket.

The PAN agreed to give the PRI responsibility for choosing Va por México candidates for gubernatorial elections in México state and Coahuila later this year.

“In no way are we threatening a split,” Zambrano said before reiterating his support for a “democratic” selection process.

“In accordance with its democratic origin, the PRD proposes that the … [process to find a Va por México candidate] occur via a democratic, open and inclusive method,” he said.

“The management of electoral processes must be in the hands of civil society, not the political elite,” he said.

The PRD chief added that his party would be forced to “change its alliance strategy” if its Va por México partners are not willing to listen to and respect its views on how the selection process should be run.

“We hope with all sincerity that this doesn’t lead to a split [in the alliance]. We could go out on our own, … but that’s not our ambition,” Zambrano said.

Former tourism minister Enrique de la Madrid, ex-interior minister and current Senator Miguel Ángel Osorio Chong and Senator Lilly Téllez are among the other contenders to become the opposition’s flag bearer at the 2024 presidential election.

Mexico City Mayor Claudia Sheinbaum and Foreign Affairs Minister Marcelo Ebrard are the leading hopefuls for the ruling Morena party, which López Obrador led to power in 2018.

With reports from El Universal, Infobae and Aristegui Noticias

Art Week brings the ‘pulse’ of the art world to Mexico City

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MND Staff

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January 31, 2023

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Zona Maco, one of the most important art fairs in Latin America, is opening Feb. 9 in Mexico City. — Zona Maco, one of the most important art fairs in Latin America, is opening Feb. 8 in Mexico City. (Mario Jasso / Cuartoscuro.com)

Mexico City Art Week (Semana del Arte) — which runs from Feb. 8 to 12 and is most well-known for the Zona Maco fair — will bring together artists, buyers, dealers, curators and enthusiasts alike to experience and promote Mexican and foreign art through different shows around the city.

Art Week is an opportunity to experience pieces that rarely come into the country, and at the same time, a chance for buyers to purchase a piece directly from an emerging artist without intermediaries. Below is a selection of highlighted events, though there are many more scheduled.

Zona Maco

Recognized as the leading event of its kind in Latin America, the biannual Zona Maco will celebrate its 19th edition at Centro Citibanamex with the participation of over 200 exhibitors.

“This year we have received more applications from galleries compared to last year. For this reason, we think that although we did not grow the fair in square meters, we will have more visitors and return to the numbers of 2020,” said Zona Maco founder Zélika García in an interview with La Lista.

The event drew 57,000 visitors last year according to the event organizers.

For this edition, Zona Maco will present a selection of both Mexican (51%) and foreign (49%) artists from countries that include Austria, Germany, Canada, China, Spain, France, Italy, Romania and Turkey.

For Zona Maco artistic director Juan Canela, one of the things that has consolidated the show through the years is the diversity of pieces on display — from modern art, photography, design and antiques, to cutting-edge contemporary art and NFTs. Canela considers that this variety allows the visitor to take the pulse of the artistic world.

For further information and to purchase tickets, visit the event website.

Salón Acme

Salón Acme describes itself as an art platform created by artists, for artists, seeking to promote young talent and emerging artists from Mexico and abroad. From Feb. 8-12, the event will hold its tenth edition.

Salón Acme includes an “Open Call” section, which offers international visibility to artists without any cost, as well as “Guest State”, which highlights Mexican artists from various backgrounds, and “Editorial Room,” which presents a selection of publishing houses, books and rare specialty publications.

Salón Acme event in 2022. (Salón Acme Facebook)

Other sections are “La Bodega Acme,” which gives continuity to the work of past exhibitor artists, “Guest Project,” which involves national and international galleries, and “Public Programs,” which offers a series of talks and roundtables related to art.

Visitors can discuss the exhibited pieces with their creators as artists are often on hand, with no galleries involved in the process. For more information visit the Salón Acme site.

BADA 2023

Visitors at BADA art fair in 2022. (BADA Facebook)

The BADA art fair is a platform that allows artists to self-manage and generate their own sales and contacts. The fair includes disciplines from painting and drawing to printmaking, photography, textiles, sculpture, artistic jewelry and tattoos. BADA also hosts fairs in Argentina and Spain.

At the event, 100 established and emerging artists will exhibit their work directly, allowing visitors to view and purchase their works without intermediaries. The BADA concept is: “We bring art closer to people, showing that we can all be collectors.”

The event will take place at Campo Marte and will also include workshops; more information can be found on their website.

With reports from La Lista, MxCity, Art Fair Magazine and EFE

Aeroméxico announces new flight from AIFA to Houston

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MND Staff

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January 31, 2023

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Aeromexico airplane — The new route was authorized by the U.S. Federal Aviation Administration (FAA) despite a current FAA ban on airlines adding flights to the United States from Mexico's airports. (Photo: Creative Commons)

Starting May 1, Aeroméxico will become the first airline to fly from Felipe Ángeles International Airport (AIFA) to the United States. The direct flight will connect Mexico City and Houston, Texas, with daily flights onboard an Embraer 190.

“After a regulatory assessment of the current conditions, U.S. and Mexican authorities approved the route, considering that AIFA also serves the metropolitan area of the Valley of Mexico,” Aeroméxico said in a statement, adding that tickets will be available for sale in the next few days.

According to the company, the scheduled flights to Houston from the Mexico City International Airport (AICM) will not be affected by the new flights.

Houston will be the ninth destination Aeroméxico offers from AIFA in addition to Acapulco, Cancún, Guadalajara, Monterrey, Mérida, Oaxaca, Puerto Vallarta and Veracruz.

Aeroméxico’s goal is to expand its connectivity network between Mexico and the United States with 22 routes from AIFA.

The airline obtained authorizations from Mexico and the United States to operate the route, despite Mexico’s loss of its Category 1 air safety rating with the U.S. Federal Aviation Administration in May 2021. Part of the consequences of being downgraded to Category 2 status was a prohibition against Mexico’s airlines adding new routes to the United States until Category 1 status is restored.

Aeromexico said it will continue to support the FAA’s aeronautical authority in the matter.

AIFA is one of president López Obrador’s flagship projects. It opened on March 21, 2022.

With reports from Forbes online and El Financiero

Snow shuts down border highways in Baja California

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Cat Rainsford

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January 31, 2023

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A lone car navigates a snowy highway near La Rumorosa, Baja California. (Twitter @mediosobsonmx)

The fifth winter storm of the season has hit northwestern Mexico, causing heavy snow in Baja California that has shut down highways and forced local schools to close.

The Centinela-La Rumorosa highway, the main route along the U.S. border, was temporarily closed in both directions on Tuesday morning, after heavy snowfall that started on Monday night in the town of La Rumorosa in the municipality of Tecate. Local authorities have set up a temporary shelter and are coordinating with the Red Cross to provide assistance to those who need it.

As of shortly before 11 a.m. local time, the state transportation ministry announced that the Centinela-La Rumorosa highway was open in both directions. The La Rumorosa-Tecate free highway was also open in both directions while the La Rumorosa-Tecate tollway remained closed, the ministry said.

The storm is the result of cold fronts and bands of low pressure interacting across the northwest of the country. This has caused heavy rains and gusty winds of up to 90 km/h in Baja California, Sonora, Chihuahua, Sinaloa and Durango, with sleet and snow in the mountainous regions of Baja California.

On Sunday night, the government of Baja California announced school closures in the municipalities of Tijuana, Ensenada, Tecate, Rosarito and San Quintín, in anticipation of the extreme weather conditions.

Local people were also advised to wrap up warm, drive with caution, avoid unnecessary journeys and call 911 in case of emergency.

Meanwhile, another cold front interacting with the subtropical jet stream has brought high winds, heavy rains and fog banks to the northeastern states of Coahuila, Nuevo León and Tamaulipas.

The National Weather Service (SMN) projects that the storm conditions will continue throughout Tuesday and into Wednesday, with more extreme weather likely during the coming month.

With reports from Zeta Tijuana, Linea Directa and La Lista

Federal, state officials meet to discuss nearshoring opportunities

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MND Staff

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January 31, 2023

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A woman speaks into a microphone while seated at a table next to other formally dressed politicians. — According to reporting by El Financiero newspaper, the Economy Ministry has shut down offices in Switzerland and the United States. (Twitter @SE_mx)

All 32 federal entities have the opportunity to benefit from the nearshoring phenomenon, Economy Minister Raquel Buenrostro said Monday.

The Economy Ministry (SE) said in a statement that Buenrostro and other federal officials met with the economic development ministers of Mexico’s entities (including 31 states and federal entity of Mexico City) in order to “share joint strategies to take advantage of the relocation of new industries.”

The federal economy minister, the statement said, “emphasized the commitment” of the SE to “facilitate and accompany investment projects via a ventanilla única for investors.”

The ventanilla única is a streamlined system that allows foreign investors to complete all bureaucratic procedures on a single website.

Buenrostro told the economic development ministers that “due to its geopolitical position,” Mexico is well-placed to attract foreign investment.

“All [32 entities] are potential candidates to receive investment,” she said.

The economy minister told state officials that companies across five sectors — semiconductors, automotive, electricity and electronics, medical and pharmaceutical devices and agro-industry — are especially well-suited to relocating to Mexico.

Buenrostro, the SE statement added, “called on the state ministers to draw up a work plan for the next two years.”

“Among the points it must contain is a diagnosis of the productive vocation of each entity,” the ministry said.

Buenrostro said last November that “more than 400 North American companies have the intention to carry out a relocation process from Asia to Mexico,” while billionaire businessman Carlos Slim predicts that the nearshoring phenomenon — which is already benefiting some regions — will fuel strong economic growth in coming years.

The SE said in December that Buenrostro and U.S. Secretary of Commerce Gina Raimondo would collaborate to put together a “joint presentation” to the private sector in early 2023 in order to “disseminate the opportunities and economic and fiscal benefits that both countries offer for the relocation of companies.”

Mexico News Daily

Mexican ‘unicorn’ freight forwarder startup opens office in the US

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MND Staff

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January 30, 2023

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Founders of Nowports, left to right, Alfonso de los Ríos and Maxamiliano Casal — Nowports' founders, from left to right, Alfonso de los Ríos and Maxamiliano Casal. (Photo: courtesy)

Nowports, an automated digital freight forwarder based in Monterrey, has opened its first branch in the United States.

Founded in 2018 by Mexican Alfonso de los Ríos and Uruguayan Maximiliano Casal, the company has arrived in Miami, Florida, looking to expand in North America before making the jump to Europe, Players of Life magazine reported.

“Miami is the Latin American hub. It was a no-brainer for us to open an office in Miami in order to support our customer base,” said Alan Bebchik, country manager of the new Nowports headquarters in the United States. He added that the growth in shipping to the US East Coast – and the port of Miami specifically – also made the city an attractive place for their branch.

Nowports company board of directors at Mastercard Gala Endeavor — Nowports board of directors at the Mastercard Gala Endeavor in December, where they won Entrepreneurs of the Year. (Photo: courtesy)

Nowports got its first big boost in 2018 when it was accepted into Y Combinator, the Silicon Valley accelerator, where they secured an investment of US $5.3 million dollars. Later in 2019, Nowports closed a $150 million Series C round with investors that included SoftBank, Tiger Global, Foundation Capitall and Monashees. In 2022, it officially became a “unicorn” when it announced its valuation had climbed to US $1.1 billion after an investment round led by SoftBank’s Latin America Fund.

The company, which currently operates in seven countries in Latin America (Mexico, Colombia, Uruguay, Peru, Brazil and Panama), set up shop in Wynwood and 12 of its 950 employees are based there with plans to double its local headcount by May, reported Refresh Miami.

“We believe that transforming the supply chain in emerging markets can boost their economic growth,” said Alfonso de los Ríos, Nowports’ 23-year-old co-founder and CEO. “The opening of our office in Miami is a step in that direction. We are going to see a more intertwined commercial relationship between the US and Latin America in the next few years. Digitization of supply chains will be a crucial aspect of this new era.”

Nowports has also developed Nowports Capital, a fintech company that provides inventory credit solutions and an internal insurance company for their freight forwarding customers.

The company has received several recognitions, named as one of the 10 most innovative companies in Latin America in 2022 and the founders as “Entrepreneurs of the Year” by Endeavor México.

With reports from Players of Life and Refresh Miami

Recycling plant fire in Tijuana sends thick smoke across border

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MND Staff

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January 30, 2023

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Fire in carboard recycling warehouse in Tijuana — Fire officials in Tijuana said they didn't expect the fire, which began Saturday, to be put out completely until later this week. (Photo: Tijuana Fire Department)

A large fire that started Saturday in a factory near the Mexico-United States border in Tijuana was still burning on Monday and was not expected to be fully extinguished until later this week.

A fire broke out at approximately 5:30 a.m. Saturday at the Cartonera de Otay cardboard recycling plant in an industrial area of the northern border city. The cause of the blaze was unclear but followed some kind of explosion at the plant, according to social media users.

Workers were evacuated, and surrounding streets were cordoned off. No injuries were reported. The fire is now under control, Tijuana Fire Department officials said on its Facebook page, but it will take days to put out.

More than 100 firefighters and other emergency personnel responded to the blaze, according to fire department officials, but they couldn’t stop it from spreading to other factories and warehouses.

The newspaper El Heraldo de México reported Monday that the fire was still burning more than 50 hours after it began.

Tijuana fire chief Rafael Carillo said that firefighters have been working hard to control the blaze and reduce risks to citizens. He predicted that it will be fully extinguished in the coming days.

Aterrizando en tijuana 🛬y Qué pasó ? #tijuana #incendio #otay pic.twitter.com/SgOdBn4b2G

— Zyan (@Zyanya9) January 28, 2023

A Twitter user who said he was landing at Tijuana International Airport posted images of the plume of smoke over the city.

Carillo said in a television interview that assets of seven companies were damaged by the fire, which he described as the largest in the area in 15 years. He warned citizens to avoid breathing in the smoke emanating from the blaze due to its toxicity.

Cardboard and plastic are among the materials that have fueled the fire.

Thick plumes of smoke crossed the border into neighboring San Diego county on Saturday. The United States National Weather Service (NWS) shared a satellite image on social media that showed the areas affected by the smoke.

Firefighters, who have been working nonstop since Saturday to control and extinguish the fire, received sandwiches and beverages from volunteers organized by the city of Tijuana. (Photos: Tijuana Fire Department)

“A smoke plume near the international border is spreading smoke aloft over #SoCal,” or southern California, NWS San Diego said on Twitter.

A video posted by an airline passenger flying into Tijuana airport showed a large cloud of thick black smoke rising from the blaze and spreading across the sky near the Mexico-U.S. border.

With reports from Publimetro, El Imparcial, CBS8 and El Heraldo de México

Volaris and VivaAerobus had record-breaking passenger numbers in 2022

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MND Staff

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January 30, 2023

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shutterstock_605919737 Mislik — Both airlines reported ferrying at least 20 million passengers in 2022. (Photo: Mislik/Shutterstock)

Low-cost Mexican airlines Volaris and VivaAerobus have reported historic figures for 2022.

Volaris, which according to specialized media in the aviation industry is now the largest airline in Mexico, reported transporting more than 30 million travelers last year, surpassing its 2021 figure of 24.3 million passengers.

In 2022, the budget airline added 30 new flights to and from the Mexico City metropolitan area’s newest airport — Felipe Angeles International a decision that, along with resuming flights at Toluca International Airport in México state, allowed Volaris to offer 1 million more seats on flights in Mexico, according to airline officials.

Volaris CEO Enrique Beltranena said that “passenger traffic in December was solid, and booking curves remain resilient. We continue to estimate that passenger growth will be in line with our anticipated capacity growth.”

Viva Aerobús also offered new routes in 2022 — from Bajío International Airport (BJX) in Silao, Guanajuato, and the Los Cabos International Airport in Baja California Sur — and offered 24 routes in the summer season. It, too, reported record-breaking passenger numbers.

The airline reported more than 2 million passengers in December alone. It also said that 2022 was the first year in which it transported 20 million passengers.

Viva Aerobús CEO Juan Carlos Zuazua said that they “saw strong demand in December as well as healthy levels of passenger traffic” across all their markets. Between 2019 and 2022, and despite the COVID-19 crisis, VivaAerobus’ traffic grew by 72.2%, he said.

One other reason Viva Aerobus and Volaris likely picked up more passengers in 2021 and 2022 was due to the closure of low-cost airline Interjet, which stopped serving customers in December 2020.

With reports from Riviera Maya News, Simple Flying

The Sounds of CDMX: digital story explores the ‘sonic landscape’ of Mexico’s capital

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MND Staff

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January 30, 2023

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elderly man in mexico city playing the trumpet for money — An elderly man plays the trumpet for spare change in Mexico City's center. (Photo: Tercero Díaz/Cuartoscuro)

The recorded cry of “tamales oaxaqueños, tamales calientitos” and the ringing bell of a garbage collector are among the sounds featured in an online audiovisual story that explores the cacophony of noise on Mexico City’s streets.

“The Sounds of CDMX: How informal street vendors define the sonic landscape of Mexico’s capital” was published by the digital publication The Pudding in late 2022.

Watch this video on YouTube

Hear the voice of Elias Zavaleta, whose recording of himself hawking tamales ended up becoming the sound of Oaxacan-style tamale vendors in the capital.

“In Mexico City, many notes in the city’s soundscape come from itinerant merchants,” observes the story by United States visual journalist Aaron Reiss and Mexican academic and photojournalist Oscar Molina Palestina. “… Each type of merchant calls out to potential customers with a unique, identifying noise or cry. … Each of their sounds give another layer of meaning to the din of this beautiful metropolis.”

While scrolling through the interactive story, readers — virtually transformed into Mexico City residents – encounter a range of noisemakers typical of the capital, including a knife sharpener and his pan flute, a garbage collector and his bell and a vendor and his audio recording that touts hot tamales from Oaxaca.

The music of the capital’s iconic organ grinders is also featured in the story as is the well-known recording of the ubiquitous collector of unwanted domestic items: “se compran colchones, refrigeradores, estufas…“

The unique sounds of Mexico City “can delight, annoy and inspire,” acknowledges The Pudding story, noting that the junk metal recording “has been remixed for many, many, many, songs and transformed into a battle cry for feminist activists.”

It also says that “the soundscape of the city is not fixed” as “it changes as the city does.”

“… Old sounds fade and new sounds arrive as the city and its current inhabitants generate a unique sonic landscape,” Reiss and Molina write.

Their story – enhanced with vibrant illustrations by Diego Parés – comes recommended for anyone interested in Mexico City generally, and its aural idiosyncrasies in particular.

Residents and anyone who has visited the city will likely find sounds with which you’re familiar — and which you may well love or loathe.

"Colchones, tambores, refrigeradores" se escucha en Qatar 🔊🤭

Watch this video on YouTube

The familiar recording of a woman’s voice announcing that she accepts junk and scrap metal is so iconic that one Mexican soccer fan brought it with him to the World Cup in Qatar.

Mexico News Daily