Once an economic afterthought, Oaxaca now leads the country in industrial growth

Oaxaca led the state for concern maturation successful December 2024, marking the 2nd consecutive period the historically underdeveloped confederate authorities topped the list, according to a nationalist survey.

The nationalist statistic bureau INEGI concern improvement survey measures maturation by authorities connected a monthly and annualized basis. A caller survey recovered that Oaxaca topped the database of 19 Mexican states that experienced concern maturation successful the past period of 2024.

Rural, mountainous Oaxaca has historically received small concern investment, sometimes owed to absorption from section Indigenous communities. (Lon&Queta CC BY-NC-SA 2.0)

The information for December, released connected Wednesday, indicates Oaxaca saw 18.8% maturation compared to December 2023. Only 1 different authorities — Colima, astatine 10.8% — deed treble figures. Baja California Sur was 3rd with 9.8% growth.

Oaxaca was No. 1 successful November arsenic well, signaling 15.9% growth, conscionable supra Guerrero (15.1%) and Baja California Sur (14.4%).

Manufacturing and operation drove Oaxaca’s December performance. The erstwhile climbed 19.9% compared to December 2023 portion the second roseate 19.5%. The surge successful these sectors offset antagonistic numbers successful mining (down 9.4%) and minimal vigor assemblage maturation (4.2%).

Oaxaca has benefited from the US $2.8-billion Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) task — featuring near-complete cargo and rider obstruction lines connecting the Pacific Ocean with the Gulf of Mexico. A trunk enactment from Coatzacoalcos, Veracruz, to Ciudad Hidalgo, Chiapas, volition beryllium completed aboriginal this year.

The CIIT task besides includes 10 concern improvement poles, arsenic good arsenic the enlargement of “intermodal” infrastructure astatine the ports of Salina Cruz, Oaxaca, and Coatzacoalcos.

The improvement poles — six of which are located successful Oaxaca — dwell of from 80 to 500 hectares of spot utilized chiefly to location concern parks.

Oaxaca’s Minister of Economic Development Raúl Ruiz Robles told El Economista that helium anticipates the improvement poles successful his authorities volition pull much than 720 cardinal pesos (US $35.3 billion) successful concern implicit the adjacent six years.

The authorities is besides investing successful road upgrades with 2 projects successful peculiar paving the way: improvements to the Mitla-Tehuantepec conception of Highway 190 that connects the eastbound extremity of the cardinal vale with Tehuantepec, the 2nd largest metropolis successful the Isthmus; and the Barranca Larga-Ventanilla conception of Highway 175 that connects cardinal Oaxaca with the Pacific Coast adjacent Salina Cruz.

The US $2.8-billion Interoceanic Corridor task (CIIT) has brought infrastructure improvement to the Oaxacan countryside. (Presidencia/Cuartocuro)

The authorities is besides gathering a state enactment that would service some residential and concern needs.

There is inactive plentifulness of country for growth, said José María Villalobos, a advisor and erstwhile president of Oaxaca’s College of Economics.

He noted that contempt the surge successful investments — particularly successful housing, tourism and infrastructure — the CIIT task has not translated into occupation growth. Perhaps of much concern, according to Villalobos, is the notable deficiency of involvement successful processing alternate sources of energy, specified arsenic wind farms.

In immoderate instances, Indigenous communities person fought against the installation of upwind farms, and the deficiency of caller vigor sources, Villalobos says, has constricted the accomplishment of caller manufacturing enterprises.

With reports from El Economista and Revista Transportes y Turismo