Mexico FDI drops 28% in third quarter; total figure for first nine months still up 11%
In the third quarter of 2018 Mexico received US$ 4.1 billion in Foreign Direct Investment (FDI), 28% less than the same period of 2017, according to data from the Ministry of Economy. In the first nine months of 2018 FDI totaled US$ 24.2 billion, which represents an 11% hike compared to same nine months of the previous year.
In the current federal administration, US$ 198.7 billion in FDI have entered the country, an amount that is already 52.4% higher than what was registered in the previous term.
The sector that received the most foreign investment was the manufacturing sector, which captured 41.3%; it is followed by financial services with 16.4%; generation of electric power, water and gas with 8.9%; trade with 8.2% and mining with 6%.
The United States continues to be the country that contributes the most investment with 36.4% of the total followed by Canada with 13.8% and Spain with 11.8%. The list is complemented by Germany, which contributed 9.4% and Japan with 6.5%.
The foreign investment registered between January and September came from 3,156 companies with foreign capital participation.
Of these economic injections, 41.3% occurred through reinvestment of profits; 36.9% were new investments and 21.8% for inter-company accounts.
The figures reported by the Ministry of Economy consider investments made and formally notified to the agency; for this reason, the nature of these is preliminary and could suffer upward updates in the coming quarters.