Foreign investment for Mexico is a crucial element at this time. The country needs to reactivate the generation of income and jobs and without a doubt this type of investment, like the one that has now been announced around Nestlé, is now portrayed as a matter of great importance.
And it is that from the government of Guanajuato, they have indicated that the renowned company will invest about 160 million dollars to generate just over 20 new jobs, of which 1,700 will be direct.
The information was signed by Diego Sihue Rodríguez Vallejo, governor of that entity, who stressed that with this amount the brand seeks to expand its operations that it carries out in the Inland Port of Guanajuato which is located in the municipality of Silao.
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The investment that Nestlé will make is aligned with the bets that other firms have already made in the country, which now come at a necessary time after the collapses experienced last year, when the pandemic experienced its most acute moment in the nation, until now.
From January to September of last year according to data from the Ministry of Economy, it was estimated that the Foreign Direct Investment (FDI) that entered the country amounted to 23 thousand 482 million dollars, which represented a drop of 9.9 percent compared to the same period of the previous year.
These figures were without a doubt alarming. We cannot forget that two of the great effects of foreign direct investment are the generation of jobs and the promotion of economic growth in the country. This also makes it possible to finance current account deficits, helps to measure long-term foreign investors’ confidence in the country and also has a positive effect on the adoption of more efficient technologies, which can contribute to raising productivity.
The Covid-19 pandemic has caused a huge global economic upheaval, causing severe recessions in many countries. Therefore, analysts see that Mexico managed to capitalize on a lower investment in Brazil to attract a greater number of investors from around the world.
Thanks to this phenomenon, which is reinforced by movements such as Nestlé, Mexico managed to place itself within the 10 countries with the highest attraction of Foreign Direct Investment, according to data from the Organization for Economic Cooperation and Development (OECD)
The conditions left by the pandemic around the world allowed the nation to jump from eleventh position (which it would have reached in 2019) to seventh last year, after the country raised 29,079 million dollars, a variation of 14.7 percent.
Now, in the short term, the challenge will be to maintain the numbers and, if possible, continue to climb positions, as already mentioned, foreign direct investment has an inference in Mexico’s confidence in the world, it is capable of fostering diplomatic relations stronger and also collaborate with the generation of jobs, therefore, keeping an eye fixed as a goal is essential for authorities and for the first benefited sector: entrepreneurs and indirectly, consumers.