• DATA: Mexico’s construction industry suffered its worst contraction in 25 years falling by 17.45 percent in 2020 according to new data by Mexico’s independent statistics agency (INEGI). Industry groups estimate that some 2,000 construction companies closed permanently as a result.
• DOWNTURN: Not considered an essential business when the country entered a lockdown in March, the Mexican construction sector not in a strong position when the coronavirus pandemic downturn hit having contracted for 19 consecutive months. More than 200,000 jobs were lost, industry says.
• PREDICTIONS: “We see a complex panorama. The falls were predicted and everyone saw that we were going to end up really badly and it did”, said Eduardo Ramírez, president of the Mexican construction chamber (CMIC), who added that production value also fell among those that survived.
• DEMAND: Despite Mexico declaring it an essential business in June, construction did not recover as other did given its dependence on a subdued domestic demand. The International Monetary Fund (IMF) insisted in January that Mexican sectors linked to exports are likely to recover faster.
