Foreign direct investments grow 14% in the first semester, despite the volatile environment



the Foreign direct investment (IED) who arrived in Mexico in Mexico the first half of 2018 amounted to 17 thousand 842 million dollars, quantity that is 14 percent larger that the provisional figure noted during the first half of last year, the Ministry of Economic Affairs (SE) reported through a statement.

This despite the uncertainty of the future of world trade with the imposition of tariffs and trade tensions with North America, the tax reform of the United States and the presidential election.

The number of investments received is the highest since the first half of 2013, when the energy reform was approved and flows were registered for 23,000 800 million dollars. Moreover, the growth rate is the highest measured in the past three years.

"Despite the changes in the policy in the United States and the presidential elections, foreign investments continue to enter, as Mexico still has very good figures on macroeconomic activity, which is the first thing rating agencies see, and we continue to maintain controlled inflation. government debt is controlled, "said Rocío Ruiz, Secretary of State for Competitiveness and Normativity of the SE, in an interview with El Financiero.

Another factor influencing this increase, the official assured, are the various free trade agreements that Mexico has concluded. This commercial opening, he added, allows external imbalances not to be generated, ie there is sufficient export to finance the imports.

Foreign direct investment from these first six months of the year comes from 2 thousand 392 companies with foreign capital participation and 58.2% of them have their origins in the reinvestment of profits; 16.9 percent of new investments; and 25 percent for accounts between companies.

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The sector that benefited the most from foreign capital in Mexico was that of the manufacturers, which received 43.1 percent of the total FD; than that of financial services, which conquered 19.4 percent; it is followed by electricity, water and gas with 8.4 percent; trade, by 8.2 percent; mining registered 6.3 percent; and the rest of the sectors account for 14.6 percent of this type of investment.

"The investments that come from sectors that are already in Mexico and they know us very well, most of them come from the automotive, aerospace, electronics and banking sectors, which is very important. investments are also due to the opening we have had in our financial sector so that they can invest in banks, "said Ruiz.

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the land that bet more investments in Aztec countries is still the United States, which brings together 43.1 percent of total foreign economic injections; then Spain, which has 15.4 percent; followed by Germany with 8.8 percent; Canada is the fourth place with 7.1 percent; fifth place has Japan with 5.9 percent; and the rest of the countries added the missing 23.7 percent.

In total, 192 thousand 830 million dollars have been collected for the concept of FDI during the sexesiumthat is 22.4 percent higher than the target set in the national development plan 2013-2018 and 52.8 percent higher than the target figure registered in the age group of the previous administration.

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The figures reported by the SE only take into account investments made in a formal way and notified to the national register of foreign investments; For this reason, the figures are provisional and upward changes can occur in successive quarters.

For Leticia Armenta, director of the Center of Economic Analysis of the CCM of Tec de Monterrey, the attraction that Mexico has retained is the result of the efforts of some states to develop policies that allow capital flows to industries and specific areas.

"In a sense, Mexico has retained its appeal to FD and has to see how different industries have evolved in Mexico and how good they have been." On the other hand, there are regions of the country that have tried such investments to draw, in such a way that state governments have placed different elements of economic policy to attract these flows, "he said.


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