Breaking Down the NIP

MEXICO - Report 20 May 2014 by Mauricio Gonzalez and Ernesto Cervera
Executive Summary This week we continue our analysis of the National Infrastructure Plan (NIP) for 2014-2018. In aggregate terms, investment is projected to average 8% of annual GDP and 37% of total investment (gross fixed capital formation). Those numbers imply that the ratio of total investment to GDP would expand from 21.1% in 2013 to 32.5% by 2018. Over that same period budgetary public investment is projected to rise from 4.6% to almost 10% of GDP, an unprecedented level in Mexico’s recent past. This week we will focus our analysis on the implications of the NIP for each of the affecte...

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