Weekly Report -18 January 2005

TOURISM | Steady growth in 2004. Mexico's earnings from tourism in January-November last year reached US$9.68bn, or 14% more than in the comparable period of 2003. This was the result of a 10.4% increase in the number of visitors, to 18.2m, who spent on average US$678 each, 4.5% more than in the previous year.

Tourism is Mexico's third-biggest source of hard currency, after oil exports and remittances by expatriates.

INVESTMENT | Accelerating towards year-end. Gross fixed investment in the first 10 months of 2004 was up 6.3% on the same period of 2003, and with an upturn in October. Investment in machinery and equipment (an indicator of preparation for future expansion) was up 7.7% - with imported equipment up 10%.

GROWTH | Industry clocks under-average growth. Industrial activity in November was up 0.24% on October, taking the 11-month total to a level 3.9% higher than that of the same period in 2003. Though this was lower than the 4.5% growth estimated for the economy as a whole, November marked the 12th successive month of expansion. In November construction recorded 5.3% year-on-year growth, manufacturing 3.9%, mining 3.2%, and electricity, gas and water, 1.9%.

AUTO INDUSTRY | Home sales up, output and exports down. Last year sales of cars on the domestic market reached an unprecedented 10.9m, 12% more than in 2003. Production, however, was down by 2.2% to 1.5m units, and exports by 6.5% to just over 1m.