Despite uncertainty on NAFTA, Mexico’s FDI increases 11% during 2017

26 February, 2018

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In 2017, Mexico received US$ 29.7 billion in Foreign Direct Investment (FDI), despite the uncertainty generated by the renegotiation of the North American Free Trade Agreement. According to the Ministry of Economy, the figure was 11.1% higher than the preliminary one registered a year earlier.

Despite Trump's threats for companies to invest in the U.S. instead of Mexico, that country was the main driver of FDI last year.

The United States injected US$ 13.9 billion of productive capital in Mexico, that is, 47% of the total flow registered during 2017.

In addition, most of the investments were allocated to the automotive sector and financial services, said the Undersecretary of Regulation and Competitiveness of the Ministry of Economy, Rocio Ruiz.

The official said that so far during this administration, the foreign capital amounts US$ 171.5 billion, 50% higher than what the previous administration received in its first five years.

Ruiz also mentioned that an increase in the maximum limit of foreign capital in air services from 25% to 49% contributed to the good performance of the FDI.

In a statement, the agency reported that the investments that sector received were equivalent to US$ 11.4 billion during 2017, that is, 38.5% of the total.

The reinvestment of profits totaled US$ 9.6 billion last year, which meant 32.5% of the total, while intercompany accounts registered US$ 8.6 billion, which was 29% of total.

Manufactures consolidated as the main target for foreign investment, since they concentrated almost half of the capital attracted with US$ 13.4 billion, or 45.3% of total.

It was followed by transportation, post office and storage, with US$ 3.2 billion (10.8%); construction, with US$ 3.06 billion (10.3%); trade, with US$ 2.7 billion (9.2%); financial services, with US$ 2.6 billion (9%), and the remaining sectors US$ 4.5 billion (15.4%).

MexicoNow

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