Baja California Sur recorded one of the country’s strongest industrial performances this year, ranking second nationally in growth, according to the National Institute of Statistics and Geography (INEGI). The state’s industrial activity rose 21.2% from June 2024 to June 2025, though it saw a slight 0.4% slowdown in May.
The construction sector led the surge, posting the highest national increase at 44.8%. Economists view this as a strong signal of the state’s expanding economic base.
Alberto Torres, a research professor at the Autonomous University of Baja California Sur (UABCS), said the industrial rise aligns with the state’s Quarterly Indicator of Economic Activity, which tracks overall development and growth. He noted that much of the momentum is tied to tourism and real estate, driven by new investments in La Paz and Los Cabos and the expansion of digital lodging platforms such as Airbnb.
Still, Torres warned that economic concentration in a few sectors could make the state vulnerable to downturns. He urged greater investment in high-value industries such as renewable energy and advanced aquaculture to foster sustainable, diversified growth. While job creation has helped reduce working poverty, he added that rising prices and logistical challenges have eroded purchasing power for many residents.
Business leaders share both optimism and caution. Paúl Valdiviezo, president of the Mexican Employers’ Confederation (COPARMEX), acknowledged Baja California Sur’s strong growth indicators but emphasized the need for investments that deliver broader social benefits through improved public services and infrastructure.
Valdiviezo also voiced concern over the uncertainty created by recent constitutional reforms, which he said have made investors wary of new projects. Members of COPARMEX have reported growing hesitation among businesses amid fears of an economic slowdown.
As reforms unfold, economists and business leaders are closely watching how policy changes might shape the state’s future growth trajectory.
