Mexico sees slow recovery

Mexico sees slow recovery
21 March 2012

Mexican consumption reached 40.6Mt in 2011, representing a growth of 3.9 per cent and a similar growth rate is expected for this year as a number of challenges lie ahead.

Tough market conditions have prevailed in Mexico since the global economic crisis and over 2009-2010 , the domestic cement industry faced one of its most challenging phases to-date. "We come from a very strong crisis, we recovered only slightly last year"; the sector shrank 3.8 per cent on average in both consumption and production in the period 2009-2010, recognised the chief executive of the Chamber National Cement (Canacem), Osmin Rendón.

INEGI data show that domestic demand in 2011 totaled 40.6Mt, representing an increase of 3.9 per cent, compared to the 4.5 per cent drop in 2010.

Looking ahead, the association forecasts low single-digit growth for 2012. "If the new federal government activates at its best the National Infrastructure Programme and the National Housing Plan this year we expect similar growth to 2011, up three per cent", estimated Mr Rendón. However, he notes that the domestic industry has not grown significantly due to the lack of public policies and support in key branches, such as infrastructure and housing, which represents the strongest challenge for the sector (Source, Milenio, Mexico).

Published under Cement News

Tagged Under: Mexico