Foreign Direct Investment recovers slowly in the first quarter

Foreign Direct Investment recovers slowly in the first quarter

Mexico retains its attractiveness for FDI, as companies’ supply chains are reconfigured following production cuts due to the pandemic, which hit the auto industry hard.

The preliminary figures available to date indicate that from January to March 2022, 19,427.5 million dollars were captured, net result by company or trust, of the difference of 24,313.3 million dollars registered as inflows and 4,885.8 million dollars in outflows.

Preliminary FDI registered to date for January-March 2022 came from: 1,807 companies with foreign capital participation; 1,306 trust contracts; and, 15 foreign legal entities. In addition, it is integrated as follows:

By type of investment (origin of financing): through reinvestment of profits, 47.7%; for new investments, 45.2%; and, for accounts between companies, 7.1%.

By sector: manufacturing, 24.2%; information in mass media, 19.4%; financial and insurance services, 17.2%; transportation, 15.3%; construction, 7.3% and mining, 5.8%. The remaining sectors captured 10.8%.

By country of origin: United States, 39.1%; Spain, 10.8%; Canada 7.1%; France, 3.4%; Argentina, 3.2%; and the United Kingdom, 3.0%, other countries contributed the remaining 33.4%.

In 2021, Mexico received 31,621.2 million dollars (mdd) from direct foreign investment, which represented an increase of 8.7% compared to 2020, the year of the pandemic.