11.4% physical investment in infrastructure grew in 2024

In 2024, budget resources to physical investment added a billion 34 thousand 918 million pesos, an increase of 11.4 percent compared to the amount reported in 2023, which was 887 thousand 119 million pesos, according to the Ministry of Finance and public credit (SHCP).

The growth was due to greater infrastructure expense (not including investment in hydrocarbons by Pemex), since 710 thousand 800 million pesos were allocated, which represented an increase of 18.8 percent compared to 710 billion pesos that spent in the field in 2023.

Investment in infrastructure in 2024 represented 3.1 percent of the gross domestic product (GDP), above the average of 2.7 percent recorded in the previous five years, the agency said in the report on the economic situation, finance and public debt to the fourth quarter.

“This level of investment favored the culmination of priority projects with direct impact on economic growth and regional development, such as the Mayan train, the Mexico-Toluca intercity train, the interoceanic corridor, as well as the hydraulic works of the National Commission of the National Commission of the National Commission of the National Commission of the Water (Conagua) and Urban Improvement initiatives, roads and roads.

These projects not only strengthen connectivity between the country’s regions, but also promote productive activity and encourage the integration of value chains into strategic sectorshighlighted the SHCP.

On the other hand, physical investment in the hydrocarbons sector by Pemex fell 1.9 percent in real terms from 315 thousand 600 million pesos in 2023 to 324 thousand 100 million pesos last year.

In 2024, the expenditure of the Federal Public Sector registered its largest expansion in the last 16 years when growing 7.7 percent, which represented the highest real annual growth rate since 2008, when it was 10.1 percent.

The resources were mainly allocated to current expenditure, secondly to subsidies and government transfers and thirdly to physical investment, whose expense approaches the amount that the federal government allocated to the payment of pensions.

Pension spending – without considering those delivered through programs for older adults and people with permanent disabilities – was a 453 thousand 234 million pesos billion, an annual increase of 6.6 percent compared to 2023, when it was from a Billón 302 thousand 705 million pesos.

In this way, pension spending represented 15.9 percent of the total public sector expenditure and was 7 percentage points higher than observed in 2006, which was 8.9 percent.

Expenditure on government workers has grown over the past 19 years, between 2006 and 2024 registered a real increase of 226.4 percent.