Mexico is attractive for foreign capital

With 36,281 million dollars during 2023, Mexico is in the top 10 of receptors of Global Foreign Direct Investment (FDI).

Figures from the United Nations Trade and Development Organization (UNCTAD) showed that, last year, the country was ranked ninth in earning foreign currency for productive investment that generates jobs and increases the growth capacity of countries.

On a global scale, Mexico surpassed countries like Spain, United Arab EmiratesAustralia, Sweden, India and Japan; and in the Latin American context, the country was only surpassed by Brazil, while it was above other nations such as Argentina and Chile.

Confidence in Mexico is reflected in more investments,” highlighted the Government of Mexico.

At the same time, the Ministry of Economy highlighted that, in five years of the current government, the country has received 164,971 million dollars in FDI, the highest amount for similar periods of previous six-year terms, through preliminary figures .

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For last year, the agency directed by Raquel Buenrostro reported that 50% of Foreign Direct Investment flows were attracted by the manufacturing industry.

Inside, it stands out that 41 percentage points were contributed by the transportation equipment subsector, reflecting the interest of foreign automotive manufacturers to invest in the country, since it is one of the main exporting subsectors to the United States market.

Throughout the six-year period, FDI has shown relative stability in terms of annual flows, highlighting only the drop that was registered in 2020 derived from the impact of the covid-19 pandemic.

All in all, the country has registered a growth rate in Foreign Direct Investment, between 2018 and 2023, of 1.24% annual average.

The federal government highlighted that total productive investment, which includes national and foreign investment, during last year reached a coefficient of 24 percent of the Gross Domestic Product.

Adverts

The Ministry of Economy itself acknowledges that in the nearly 500 investment announcements that were registered between January 2023 and May 2024, largely due to the nearshoring phenomenon, the main sector that has made these announcements is manufacturing, mainly the automotive and auto parts sectors.

But they also highlight that sectors such as energy, construction, storage, transportation, semiconductors, electrical-electronics, the steel industry and the food and beverage sector are also contributing to more investments in the country.

Distribution

Figures from the Bank of Mexico highlight that of the total productive foreign capital that has arrived in the country, just over half (53.3%) corresponds to the concept of reinvestment of profits.

Also, just over a third (34.8% of the total) corresponded to new investments that companies have brought to the country, while the remaining 11.8% was due to the concept of accounts between companies.

Numbers

FDI has grown by 1.24 percent annually on average in the country between 2018 and 2024

Total productive investment reached 24 percent of GDP during 2023

JCS