The Gross Domestic Expenditure on R&D in Mexico has shown a declining trend over the past decade, with actual data revealing a decrease from 0.43% of GDP in 2013 to 0.28% in 2023. The year-on-year variation percentages indicate consistent negative growth, particularly noticeable in recent years, with a consistent decline of about 2.4% annually in 2021, 2022, and 2023. The Compound Annual Growth Rate (CAGR) over the last five years stands at -1.87%, reflecting the ongoing reduction in R&D investments.
Forecasts for the next five years (2024 to 2028) continue this downward trend, with the expenditure expected to reduce to 0.25% of GDP by 2028. The projected five-year CAGR is -2.26%, resulting in an overall decrease of approximately 10.81% by the end of the forecast period.
Future trends to watch for include:
- Policy changes or government initiatives to boost R&D investment, potentially altering the current declining trajectory.
- Evolving economic conditions and global competitiveness impacting funding allocation for R&D.
- Increased private sector participation in R&D potentially offsetting public sector decline.
