Only in September the physical investment fell 9%while the financial cost increased 31.3% real annual.
The cost of public debt is now higher due to the hikes of the interest rate reference of the Mexican central bank, which began in 2020, after the objective of amortizing inflation.
Last year, the cost of debt remained below spending on infrastructure. In the January-September periods this has not happened since 2020. The physical investment came from a 15.4% growth in January-September 2022while the financial cost already began its increase with a 10% increase, in 2021 it fell 7.8%.
In terms of public finances, it is preferable to have greater investment than debt expenses. Physical investment stimulates the economy and attracts private investment. While the payment of interest is an expense that does not generate production, explained Christopher Cernichiaro, postdoctoral researcher at the Metropolitan Autonomous University (UAM).