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Mexico Infrastructure Report Q2 2016

Mexico Infrastructure Report Q2 2016

BMI View: Driven by strong growth in the residential, non-residential and energy sectors, the Mexicoconstruction industry will continue its recovery into 2016. The infrastructure industry, particularlytransport, will lag behind as public-sector budget cuts weigh on growth; however we expect increasedprivate sector investment to help to offset these cuts and expect growth rates to accelerate over our forecastperiod.

Latest Updates And Structural Trends

We expect the Mexican construction industry to post 3.2% real growth in 2016, driven by continuedstrength in the housing sector and increasing investment in the newly liberalised energy sector.

The infrastructure sector will underperform as large public sector budget cuts continue to weigh ongrowth. Transport will be particularly hard hit, with an additional MXN12.3bn cut to the Ministry ofCommunications and Transport announced in February helping to solidify continued contraction withinthe transport segment.

We expect increasing levels of private sector investment to help lift the infrastructure industry over ourforecast period, with growth rates accelerating steadily out to 2025.

Mexico's energy liberalisation, kicked off by reforms in 2013 and 2014, will be fostered by a newinvestment vehicle - FIBRA E. It will encourage investment in the sector by opening up the market to awider range of potential investors and providing attractive tax incentives.


BMI Industry View
Table: Infrastructure - Construction Industry Forecasts (Mexico 2015-2021)
Table: Infrastructure Risk Reward Index (Mexico)
SWOT
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Construction And Infrastructure Industry Data (Mexico 2015-2025)
Transport Infrastructure - Outlook And Overview
Table: Transport Infrastructure Industry Data (Mexico 2015-2025)
Table: Major Works Impacted By February 2016 Budget Cuts
Table: Mexico: Key Transport Projects
Energy And Utilities - Outlook And Overview
Table: Energy And Utilities Infrastructure Data (Mexico 2015-2025)
Table: Key Projects: Energy & Utilities
Residential/Non-Residential Building - Outlook and Overview
Table: Residential and Non-Residential Building Industry Data (Mexico 2015-2025)
Industry Risk/Reward Ratings
Mexico - Industry Risk/Reward Index
Rewards
Risks
Latin America Industry Risk/Reward Index
Table: Latin America Infrastructure Risk/Reward Index
Market Overview
Competitive Landscape
Table: Key Company Financial Data
Company Profile
ICA
Table: Empresas ICA Financial Data, MXNmn, Unless Otherwise Stated
Cemex
Table: Cemex 2013, 2014 and 2015 Financial Data, USDmn
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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