Gross fixed investment in Mexico declined 2.4 percent year-on-year in March 2019, following a 1.9 percent fall in the previous month and more than an expected 2.1 percent decrease. It was the largest contraction in private investment since December, mainly due to lower purchases of machinery and equipment (-3.2 percent vs -4.8 percent in February), namely in the domestic market (-5.8 percent vs -6.7 percent). In addition, investment in construction activity shrank (-1.8 percent vs -0.1 percent), amid declines in both the non-residential segment (-3.3 percent vs -1 percent) and the residential one (-0.3 percent vs 0.8 percent). On a seasonally adjusted monthly basis, private investment fell 3 percent, the same pace as in the previous month which marked the steepest decline since April 2017. Private Investment in Mexico averaged 2.95 percent from 1994 until 2019, reaching an all time high of 33.10 percent in July of 1996 and a record low of -41.90 percent in June of 1995.
Private Investment in Mexico is expected to be 3.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Private Investment in Mexico to stand at 3.50 in 12 months time. In the long-term, the Mexico Gross Fixed Investment is projected to trend around 3.10 percent in 2020, according to our econometric models.