Private investment in Mexico decreased 6.8 percent year-on-year in December 2018, following an upwardly revised 3.3 percent decline in the previous month. It is the largest contraction in private investment since April 2017, as investment fell further for machinery & equipment (-9.3 percent from -3.1 percent in November), mainly due to the external demand (-7.7 percent from 3 percent). Also, construction activity investment also went down at a faster pace (-5.0 percent from -3.5 percent), driven by the non-residential (-7.8 percent from -4.4 percent). On a seasonally adjusted monthly basis, investment declined 0.7 percent, after an upwardly revised 3.5 percent fall. Private Investment in Mexico averaged 3.01 percent from 1994 until 2018, 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 3.30 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 3.10 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.