Value of freight transport in the economy accelerates 2.5% in 3Q24

  The value of freight transport in Mexico's economy increased 2.5% yearon-year in the third quarter of the year, at its best pace since the secondquarter of 2023.

  After falling 0.7% between January and March 2024, the Gross DomesticProduct (GDP) of freight transport spun its second quarter inacceleration, according to data from the National Institute of Statistics andGeography (Inegi). 

  In fact, with this performance, it exceeded the national GDP growth rateof 1.6% annually in the third quarter of the year, which had not happenedsince the first half of 2023. 

  With this greater dynamism, the GDP of freight transport – or its value inthe national economy – accumulated a growth of 1.1% as of lastSeptember, compared to its performance in the same period of 2023. 

  In this cumulative figure, the figures from the National Accounts showpositive numbers for freight transport; however, its speed is lower thanthe growth of the national GDP, which increased 1.8% annually in the firstnine months. 

  This can be explained by the fact that both GDPs are closely related andthe national economy is experiencing a slowdown, since between Januaryand September 2023 its growth rate was 3.6% per year, in original figures.Freight transport is a thermometer of the economy. 

Load generators       

  Although Mexico's economy slowed down in 2024, its performance in thethird quarter exceeded expectations. Primary activities grew 4.1% annually,after three quarters of declines.

  Tertiary activities, which include trade and services, advanced 2.2%annually between July and September, from a previous increase of 2.8%seen in the second quarter of the year.

  By load generators formotor transportwithin the tertiary sector, retailtrade accelerated 2.8% year-on-year, from 2.3% in the previous quarter.

  Another activity that became more dynamic were leisure, cultural andsports services, with an annual growth of 5.1% annually, higher than the4.5% seen between April and June.

  It must be considered that trade and services are the main engine of theMexican economy.Now, secondary activities, where important cargo generators such aspetrochemicals, the food industry and the manufacture of transportationequipment are also concentrated, slowed to 0.5%, compared to the 1.8%growth seen in the second quarter of 2024.

  However, the National Accounts indicate that manufacturing industriesimproved their performance, with an annual growth of 1.1% in the thirdquarter of the year; Three months ago, its variation was 1.0% annually.

  The manufacture of electrical appliances and transportation equipment,which includes the automotive industry, showed an acceleration in thereference period. These elements boosted the freight transport that servesthese manufactures.

  Transport sector in the economy  

  The value of the transport, postal and storage sector in the economyadvanced 4.6% annually in the third quarter, at its best speed since thefirst quarter of 2023.

  Services related to transportation, rail transport, courier and parceldelivery, as well as passenger motor transport were the subsectors withthe highest increases in the quarter, of 15.8%, 8.9%, 8.6% and 6.4% year on-year, respectively.

   In the accumulated to September, the GDP of the transportsectoradvanced 4.0%, at a better pace than the national economy; Theboost in services related to passenger transport and motor transport stoodout, with variations of 15.6% and 8.4%, respectively.

  Now, when considering its contribution to the national GDP, thetransportation, postal and storage sector contributed 7.5% of the nationaleconomy to the third quarter of 2024.

  Freight transport is the service of the entire sector that contributes themost, with 3.8% of GDP; followed by land passenger transport – notconsidering the railway – with 2.0% of GDP, according to own estimatesobtained with data from National Accounts of Inegi.