FDI in FiguresMexico is one of the emerging countries most open to foreign direct investment, the world's ninth largest FDI recipient. In 2020, the inflows to Mexico was relatively resilient compared to the rest of the region, as the country was already suffering a recession in 2019. According to UNCTAD's 2021 World Investment Report, FDI inflows fell to USD 29 billion in 2020 from USD
34 billion in the previous year (-15%). Nevertheless, 60 per cent of inflows were generated during the first quarter of the year, when reinvested earnings are usually recorded. The total stock of FDI is estimated at USD 597 billion in 2020. Overall, FDI inflows were affected by rising uncertainty over the government's economic agenda, its focus on fiscal austerity, the slump in fixed investment and the contraction of GDP (-8.2%). These factors were compounded by persistent concerns about the
current administration's critical stance on public-private partnerships (PPPs) and the role of the private sector in key industries, together with the financial situation of the state-owned oil company Pemex and the massive assistance it receives from the government (valued at USD 3.5 billion). Besides, shifts in the five-year plan and in the policy of CFE, the state electricity supplier, discouraged private investment in public utilities and contributed to a 67% drop in FDI in electricity
generation, transmission and distribution. Show As a member of USMCA, OECD, G20, and the Pacific Alliance, Mexico is very well integrated into the world economic order, making it an attractive country for FDI. Additionally, Mexico enjoys a strategic location, a big domestic market, a wide variety of natural resources, a relatively well-qualified workforce and diversified economy. However, in recent years, Mexico's competitiveness has suffered from the rise of organised crime and lack of reforms in the energy sector and in tax regulations. Corruption and administrative inefficiency have also been major issues and the business climate continues to suffer from safety risks in the country. Mexico is ranked 60th out of 190 in the World Bank's last Doing Business ranking, which was published in 2020, losing six spots compared to the previous year. Among the biggest investments that occurred in recent years is the purchase of Mexican bank ABC Capital by Argentine fintech Ualá, in 2021. However, the value of the transaction was not disclosed.
Source: UNCTAD, Latest available data. Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. FDI INFLOWS BY COUNTRY AND INDUSTRY
Source: Ministry of Economy (in Spanish) - Latest available data. Form of Company Preferred By Foreign Investors The most common forms of creating a business company are the Limited Liability Stock Corporation (Sociedad Anonima, S. A.) and the Limited Liability Company (Sociedad
de Responsabilidad Limitada S.R.L.).Form of Establishment Preferred By Foreign Investors Subsidiaries and assembling plants for the 'maquiladora' (assembly plant) industry.Main Foreign Companies IBM, Coca-Cola, Motorola, Walmart, Inditex Group, BBVA Bancomer,
Santander Group, Procter & Gambleetc. Also, 500 of the largest Latin American enterprises have a presence in Mexico.Sources of Statistics General Direction of Foreign Investments
© Export Entreprises SA, All Rights Reserved. Which country receives the most FDI in Latin America?In 2020, the Foreign Direct Investment in Brazil amounted to 44.66 billion U.S. dollars, while the FDI in Mexico added up to 31.37 billion U.S. dollars. Chile topped the top three with roughly 8.5 billion dollars worth of FDI.
...
. Which country has received the most foreign direct investment in recent years?List of countries by received FDI. Which country is the highest recipient of FDI?This drop is not surprising given increasing inflation and interest rates, rising energy prices and Russia's full-scale invasion of Ukraine. The United States was the leading FDI recipient worldwide, followed by China and Brazil.
Which country received highest FDI in 2022?Singapore is ranked one FDI provider to India. The small island nation has invested $15.9 billion in FY22 which is accounted for 27 per cent of India's total FDI received. USA is India's second biggest investor with FDI of $10.5 billion, with 18 per cent of total FDI.
|