Discovery Americas’ Post

Foreign direct investment in Mexico reached a record-breaking US $31 billion, according to a report from the federal Economy Ministry (SE) released Sunday. Nearly US $30.3 billion was attributed to reinvested earnings, while new investments accounted for $909 million. It marked a 7% increase compared to the same period in 2023. Companies announced over $45 billion in planned investments during this period. Despite a US $1.2 billion decline in new investments compared to the first half of 2023, reinvested earnings surged by nearly US $7.7 billion. Notably, 97.4% of profits generated by foreign investments in the first half of 2024 remained in Mexico, rather than being repatriated. Economy Secretary Raquel Buenrostro said the United States remains Mexico’s primary investment partner, contributing 44% (US $13.7 billion) of the FDI. Germany (nearly US $4.2 billion) and Japan (US $3.1 billion) followed as the second and third largest investors. Key industries included transportation, beverage and tobacco, chemicals, and technology.

MEXICO | Ministry of Economy: Plan focused on the USMCA for 2024-2030. #USMCA #Economy #Mexico #InternationalTrade #Investments https://lnkd.in/gCB6ChX3

The Mexican economy is experiencing its best moments and is positioned among the destinations that attract the largest number of foreign investments worldwide. In 2023, Mexico received 36,58 million dollars in investments, surpassing China and India and placing second in deposits among emerging markets. We advance two positions with respect to 2022, by Secretaría de Economía. México 👊 Business Sweden Stockholms Handelskammare Maria Cramér Daniel Wolvén Västsvenska Handelskammaren Kommerskollegium | National Board of Trade Sweden Secretariat of Economy Secretaría de Relaciones Exteriores de México Embassy of Sweden in Mexico

In 2023, Mexico had the lowest foreign direct investment as a proportion of domestic product (GDP) in the last decade, reported María Consuelo Pérez, general director of S&P Global Rating LATAM. FDI last year represented less than 0.3 percent of GDP, the lowest level since 1012, she said at a meeting of the American Society of Mexico earlier this week. In 2023, new investments accounted for only 13% of the total FDI, while a staggering 74% came from the reinvestment of profits by companies already operating in Mexico. This trend continued into the first six months of 2024, with the share of new investments dropping even further to just 3%. "The evidence we have on nearshoring shows that it has been slow and not that accelerated, and expectations are high for Mexico," Ms. Perez said. Pérez emphasized the need for the government to focus on generating clean energy, addressing the water crisis, and ensuring a sufficient supply of trained personnel to attract foreign companies and take full advantage of the nearshoring opportunity. Other experts attending the (AmSoc) event echoed her sentiments, noting that issues related to security, the rule of law, and inadequate infrastructure pose significant barriers to increasing foreign investment in Mexico. These challenges must be addressed to create a more favorable environment for attracting international businesses. The declining share of new investments and the low FDI as a percentage of GDP raise questions about the long-term sustainability and impact of the current investment trends in Mexico. Moreover, the uncertainty surrounding the government's proposed judicial reforms and other constitutional bills could further dampen foreign investment in the country.

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EXPANSION May 17, 2024 Patricia Tapia @ptcervantes “ Foreign investment in Mexico, beyond the US; in these [Mexico] states others dominate…. The United States is the largest foreign investor in Mexico, contributing 46% of the total, but its reign does not cover the entire country. The Mexican territory is painted, for the most part, with the flag of bars and stars, in terms of Foreign Direct Investment (FDI), but there are states in which other countries have managed to snatch the limelight from the United States. The FDI accumulated in Mexico between 2006 and 2023 reaches 556.557 million dollars. Of this, 46% (232.280 million) is from the United States, according to data from the Ministry of Economy. In second place, with a distant 10% of the cake (57.194 million dollars) is Spain, and in third place, with 9% (50.133 million), Canada. The strength of the United States FDI is evident, as it dominates in 20 of the 32 entities in Mexico. Which countries beat you in the other 12 states? “ “Canada leads in six entities……” “Japan is parked in Aguascalientes and Morelos……” “Germany settles in Puebla….” “ Luxembourg merges with Michoacán…” “ Spain is staying in Quintana Roo….” “ Belgium leaves its mark in Oaxaca…..” https://lnkd.in/gSdyhSAw

🛫 NEARSHORING TO MEXICO 🛬 On May 6, 2024, Carlos Torres, president of the BBVA financial group mentioned during the opening of BBVA's 'National Meeting of Regional Advisors (RNCR) 2024', among other things: “ ‘If Mexico is able to solve its bottleneck in energy, transport and water supply it could double foreign direct investment in the coming years and thus take advantage of its enormous potential through business relocation or ‘nearshoring’.” Do you believe that the upcoming new Federal Government will address this in a timely manner? Thanks for commenting…!!!!!! https://lnkd.in/g-GFb3Dg

El Economista By Lilia González Friday, June 7, 2024 “ Executive Council of Global Companies asks for certainty from investments The Executive Council of Global Companies said that Mexico is going through a crucial economic and political moment, so the decisions that are taken in the future will be decisive for the future of the country in the coming decades.” …… “ The Executive Council of Global Companies (CEEG) seeks to be an ally in the formation of the National Development Plan of the new administration that will be led by Claudia Sheinbaum, but investors demand commitment to the rule of law, legal certainty and security.” …… …… More than 60 large companies that operate in different countries and have a solid presence in Mexico participate in the CEEG. These companies, leaders in more than 20 sectors of the economy, represent 40% of foreign direct investment, promote national supply chains, generate 10% of the Gross Domestic Product (GDP), and are committed to innovation and the development of national talent.” ….. https://lnkd.in/gh_rYCGh

One of the main indicators of the international economic health of a country is foreign investment. Regarding the profitability of Mexico, I share with you an interesting investment that is being agreed upon these days: A Taiwanese delegation of high-level businessmen is visiting Mexico from May 5 to 11, to explore investment opportunities, especially in the electric vehicle sector. Taiwanese delegates believe that “Mexico has a strategic position to access the United States and Canada markets, and its qualified workforce is an important attraction for Taiwanese companies.” https://lnkd.in/gjUaaZ_n