The National Institute of Statistics and Geography (INEGI) published this Tuesday the preliminary results of the Gross domestic product (GDP) by the income and expenditure method, corresponding to the fourth quarter of 2023.
According to this data, The GDP reached 33.3 billion current pesos, which represents a notable increase of 8 percent at an annual rate.
The breakdown of GDP by the income method reveals the distribution of payments to the factors of production.
During the fourth quarter of 2023, the Remuneration of employees totaled 10.3 trillion pesos, representing 30.9 percent of GDP.
Taxes on production and imports contributed 2.5 billion pesos, while Subsidies reached 40,359 million pesos.
The gross operating surplus, which includes business profits and income, was 13.1 billion pesos, contributing 39.5 percent of the total.
Finally, the Gross Mixed Income, which includes the income of independent workers, amounted to 7.4 billion pesos, representing 22.3 percent.
Analysis of GDP by the Expenditure Method
From a spending perspective, Final Consumption was the main component, representing 81.4 percent of GDP in the fourth quarter of 2023.
Imports of goods and services, which are deducted from GDP, constituted 34.9 percent, while Exports of goods and services represented 34.8 percent.
According to the INEGI, Final Consumption increased by 7.6 percent, totaling 27.1 billion pesos, while Gross Fixed Capital Formation registered an increase of 17.6 percent, reaching 8.2 billion pesos. These components reflect the positive dynamics in investment and spending by Mexican consumers.
On the other hand, significant decreases were observed in other sectors, such as Exports of goods and services, which fell by 7.8 percent, and Imports of goods and services, which decreased by 11.2 percent. These figures suggest adjustments in Mexican foreign trade in response to changing global conditions.
The INEGI analysis also highlights the contributions of other elements of GDP through the income method, such as Taxes on production and imports, which contributed 2.5 trillion pesos, and Gross Mixed Income, with 7.4 trillion pesos.
Regarding the expenditure method, fluctuations are noted in the variations in inventories and other minor components, which although they represent a smaller portion of GDP, indicate significant movements within the economy.
For example, non-life reinsurance net premiums (resources) and non-life reinsurance compensation (resources) showed growth of 42 percent and 11.8 percent, respectively.
These data are crucial to understanding the direction of the Mexican economy at the end of 2023, marking trends that could influence economic policies next year. Despite external and internal challenges, components such as Final Consumption and Gross Fixed Capital Formation highlight the resilience and potential of the domestic market to drive economic growth in the future.
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