Mexico | Foreign Direct Investment: positive performance

Summary

Recently, the Ministry of Economy published preliminary data on the Foreign Direct Investment (FDI) flows that entered the country during the first half of the year.

Key points

• Key points:
• Once again, an encouraging piece of information: in said period, the country has received 29 billion dollars in FDI (an amount that will probably increase in the final figure).
• Without considering two atypical operations of 2022 (the restructuring of Aeroméxico and the merger between Televisa and Univisión), the growth of the indicator in the first six months of this year stands at a spectacular 40%.
• However, if we break down these figures, we observe that of the 29 billion dollars of direct investment that entered the country, 78% corresponds to the reinvestment of profits, 15% to transactions between companies, and only 7% to new investments.
• The data suggest that the companies already operating in the country are confident to continue doing so. On the other hand, the low ratio and low levels of new investment should raise concerns.

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