Mexico accumulated US$ 18,636 million in foreign investment in the first quarter

The confidence of foreign investors and the relocation of supply chains in Mexico It is confirmed with a foreign direct investment (FDI) for 18,636 million dollars in the first quarter of the year, celebrated the Mexican Ministry of Economy (SE).

“The confidence of foreign investors in Mexico is confirmed. At the end of the first quarter of 2023, Foreign Direct Investment amounted to 18 thousand 636 million dollars”, indicated in his official account of Twitter.

According to the dependency of the Mexican Government, this amount was higher by 48% in the first 3 months of 2022, “without considering the extraordinary investments due to the Televisa-Univisión Merger and the restructuring of Aeroméxico”.

According to data from the Mexican SE itself, in the period January-March of last year, FDI in Mexico totaled US$ 19,427.5 million, 4.1% lower than what was reported on this day, as well as 18% to the data revised from a year ago.

However, in this period of 2021, it was indicated that extraordinary movements were carried out, related to the merger of Televisa with Univision and the restructuring of the company Aeroméxico.

With the subtraction of these extraordinary investments, the data for the first quarter of 2023 is also 17.2% above the revised figures for this same period of 2022.

The Secretariat presumed that this is due to the momentum that occurs in the country due to the phenomenon known as “nearshoring” and that intends to install larger manufacturing plants in the country due to its proximity to the market for USAconsidered the largest in the world.

This “nearshoring” began to gain strength from the disruption in supply chains as a result of the pandemic, which closed borders and brought with it an increase in transport prices, mainly in the cost of maritime freight from Asia.

The situation worsened with the start of the war between Russia and Ukraine and the still restrictive trade policy against Chinese imports to the US, placing Mexico as the second trading partner of that country in 2022.

“Mexico is at the best time to receive new investments. Relocation is already a reality!”pointed the Ministry of Economy of the Mexican Government

Specialists, such as the director of Economic and Financial Analysis at Banco Base, Gabriela Siller, considered this announcement “very good information”.

“The data was very good. It should be noted that in eight of the last nine years, the largest proportion of the investment that arrives in the country was registered in the first quarter of the year. explained.

Siller estimated that, if the seasonality of previous years is maintained, this year FDI flows of US$ 43,000 million could be reached, which would imply an increase of 21% compared to the total flows received in 2022 and 51% compared to the same period. “without the extraordinary flows” from last year.

“This cannot be explained in any other way than by nearshoring”, matched.

For her part, the pro-government deputy of the National Regeneration Movement (Morena), Patricia Armendáriz, emphasized on her social networks that “the promise of relocation in Mexico takes shape”.

He also disclosed that this is partly due to company announcements: French, Schneider Electric, for US$73 million; from the Austrian My BAfor US$25 million.

As well as the Brazilian Tupy, for US$38.8 million; the China wbtl, for US$165 million; the italian Brembofor US$ 207 million, and the German ZFGroupfor US$43.2 million.

(With information from EFE)