Mexico ranks No. 11 in the world for attracting foreign investment

Mexico held steadfast arsenic 1 of the astir charismatic countries for overseas investors past year, adjacent arsenic planetary overseas nonstop concern (FDI) declined for a 2nd consecutive year

An annual study compiled by the U.N. Conference connected Trade and Development (UNCTAD). showed that successful 2024 Mexico received astir US $37 billion successful overseas nonstop concern (FDI) — up from US $36 cardinal successful 2023 — to fertile 11th successful the world. Despite the summation successful FDI past year, Mexico slipped retired of the apical 10, falling 2 spots from the No. 9 presumption it held successful 2023.

According to the UN report, Mexico’s quality to consistently pull FDI successful caller years bucks a planetary inclination successful which overseas concern is tight. (UNCTAD)

In contrast, astatine the planetary level, FDI past twelvemonth was down 11% from 2023, reaching little than US $1.5 trillion successful 2024. The diminution was driven by losses successful developed countries, peculiarly China and parts of Europe. Global FDI successful 2023 surpassed US $1.67 trillion, according to UNCTAD.

The downward inclination confirms a deepening slowdown successful productive superior flows, the UNCTAD study found.

UNCTAD said shrinking concern funds airs acute challenges to processing countries, including Mexico, portion informing that uncertainty is affecting planetary investment. The study indicated that FDI successful processing economies was virtually unchanged successful 2024 compared to 2023.

“This is not conscionable a downturn — it is simply a pattern,” UNCTAD Secretary-General Rebeca Grynspan said Thursday.

Whereas overseas concern flows to Latin American and the Caribbean were down 12% past year, UNCTAD reported that “sectoral and country-level gains awesome underlying resilience and semipermanent potential.”

Mexico was 2nd lone to Brazil (US $59 billion) successful Latin America, acknowledgment to concern successful manufacturing and logistics, UNCTAD found. 

Mexico was besides sixth among processing economies by project announcements successful integer system sectors, attracting US $29 cardinal implicit the past 5 years.

According to Mexico’s Economy Ministry, FDI flows into Mexico person performed favorably during the past 10 years, with a full magnitude of US $300 cardinal during the 2011-2021 period.

The Economy Ministry attributes Mexico’s occurrence successful attracting FDI to its strategical geographical position, competitory costs, young and talented population, and the size and spot of its interior market.

The UNCTAD study cautions that macroeconomic indicators constituent to a slowdown, however. Global GDP maturation forecasts person been revised downward since the opening of the year, portion projections for superior enactment and commercialized — important for worth chain-driven concern — person besides weakened.

Multinationals similar Spanish slope BBVA person continued to put successful Mexico contempt challenging planetary economical conditions. (Shutterstock)

The study underscores that concern shortfalls are stalling jobs, infrastructure and sustainable improvement – particularly successful the slightest developed and astir susceptible economies. 

“Too galore economies are being near down not for a deficiency of imaginable – but due to the fact that the strategy inactive sends superior wherever it’s easiest, not wherever it’s needed,” Grynspan said.

The study concludes that the concern scenery successful 2024 was “shaped by geopolitical tensions, commercialized fragmentation and intensifying concern argumentation competition.” 

The slowdown successful FDI flows is besides being driven by policies restricting overseas investment. UNCTAD reported that successful the past decade, the fig of countries imposing FDI controls, citing nationalist security, accrued from 21 to 46.

With reports from El Economista, Reforma and La Jornada