Mexico City (CDMX) has been the country's leading financial and economic hub par excellence

According to data from the Mexican Institute for Competitiveness (Imco), the most competitive entities attract more talent and investment and offer better working conditions, that is, a competitive state generates the necessary conditions to improve the quality of life of workers. Mexico City has a competitiveness index of 63.22. CDMX has been the most competitive entity in the country for 20 consecutive years in the State Competitiveness Index.

Fadlala Akabani, Mexico City's Secretary of Economic Development (Sedeco), stated that 2022 is the year of post-pandemic economic recovery, as the reopening of all economic activities and advances in vaccination have boosted overall demand for goods and services. "Thus, the recovery of businesses in the nation's capital is felt in the National Statistical Directory of Economic Units (DENUE) of the National Institute of Statistics and Geography (Inegi), which records a positive balance in the number of economic units between May 2020 and 2022, with 3,939 new establishments, mainly in the tertiary sector."

The head of Sedeco added that in regards to the recovery of jobs in Mexico City, the Mexican Institute of Social Security (IMSS) reported last September the largest increase since the pandemic began, with 84,738 new jobs, totaling three million 397,330 formal jobs. This figure compares to the number reported for the same period in 2021 with an additional 46,225 jobs in Mexico City. As for the unemployment rate, it showed a notable reduction from 7.3% in 2021 to 5.4% in 2022.

DRIVERS OF ECONOMIC GROWTH

Retail and wholesale trade increased by about 6.3% and 9.6%, respectively, between July 2021 and 2022. Regarding construction in Mexico City, the sector's production value during July was 1,651 million pesos, 400 million higher than that reported in 2021. The Building segment alone increased its value by 200% from one year to the next.

For the first half of 2022, Mexico City also regained and strengthened links with global economy. During the first half of 2022, foreign direct investment (FDI) raised by Mexico City amounted to 9.356 billion dollars, compared to the 4.126 billion captured during the same period in 2021, that is, a FDI percentage increase of 127 percent. "This represents the highest investment capture in 20 years."

In addition, exports for the second quarter of 2022 reached a record US$857 million, an increase of 30 percent for the same quarter over 2021. This is the highest export growth for a single quarter in over a decade.

" We are witnessing a resounding economic recovery in terms of employment, companies, production value, exports and investment. Thus, we estimate an economic growth for Mexico City in 2022 between 2.8% and 3.5% of GDP with respect to 2021."

Akabani added that Mexico City has it all: financial infrastructure, human capital, connectivity, industrial hubs in the logistics and pharmaceutical sectors, as well as other industries established, such as aerospace, automotive, textile, food and beverages.

REINDUSTRIALIZATION PROJECT

As a result of Mexico City's reindustrialization project, Fadalala Akabani said that over 12 billion pesos have been invested in the Vallejo industrial zone, and it is expected that there will be more investments for the renewal of infrastructure, adaptation of the zone, and preventive and corrective maintenance.

In addition, this accumulated amount is due to new plants, expansions and, above all, investment in logistics. "We hold meetings with all economic sectors for them to be familiar with the Vallejo industrial zone, its advantages, the solid waste reuse plant, construction waste plant, drainage, lighting, security cameras, in short, a whole new industrial policy to provide legal certainty and administrative certification to ensure the safety of investments."

HIGHLY QUALIFIED LABOR FORCE

There are a large number of universities specialized in engineering, languages and new skills. "Highly trained technicians are a great attraction for companies willing to invest in Azcapotzalco, where the National Polytechnic Institute, the Autonomous University of Mexico, Tecmilenio, among others, are located."

NEW INVESTMENTS

Three new investments were announced at the end of the year in Mexico City. These are aimed at the maintenance of distribution centers, the installation of a logistics hub to supply Latin America and the development and manufacture of active ingredients for the production of biotechnological drugs, totaling 950 million pesos and the creation of approximately 650 jobs.