Mexico, second destination of Foreign Investment in Latin America

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The entry of Direct Foreign Investment of Mexico in 2018 was 36,871 million dollars (mdd), which managed to maintain flows above its average of 30,000 million dollars.

Mexico was placed as the second recipient of Foreign Direct Investment (FDI) in Latin America in 2018, which grew 15.2% over the previous year and for 2019 a slight advance of 2.5% is estimated, with a positive expectation in the energy sector, according to ECLAC.

Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), reported that the entry of FDI from Mexico in 2018 was 36.871 million dollars (mdd), which managed to maintain flows above its average of $ 30,000 million.

When presenting the annual report of the agency “Foreign direct investment in Latin America and the Caribbean 2019”, he explained that there is always a positive expectation of investors in the energy sector, which is a priority for the new administration.

He reported that FDI flows to Latin America as a whole increased 13.2% in 2018, adding up to 184.287 billion dollars, thereby reversing five years of falls, but still below their maximum level of 213 billion dollars.

However, it is expected that FDI will remain weak and this year could fall 0.8%, and remain stable or less in 2020, due to the unfavorable economic cycle, he added in a videoconference from the ECLAC headquarters in Santiago, Chile.

Latin America and the Caribbean

In contrast to the global trend, foreign direct investment (FDI) flows to Latin America and the Caribbean increased 13.2% in 2018 compared to 2017, totaling $ 184.287 million.

According to this growth, five years of falls are reversed, although the figure reached last year is still below the values ​​recorded during the cycle of raw material price boom, the Economic Commission reported today in Santiago de Chile Latin America and the Caribbean (ECLAC).

“When analyzing the different components of FDI, it is observed that the recovery of dynamism in 2018 was not based on the entry of capital contributions, which would be the most representative source of the renewed interest of companies to settle in the countries of the region, but in the growth of the reinvestment of profits and loans between companies, ”said Barcena.

Source: notimex, forbes

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