Mexico has become a beneficiary of near-shoring

Mexico has registered $36,153 million worth of foreign investment announcements this year. Most of this investment in Mexico will come from American companies, totaling $19.475 billion. Foreign companies have made 93 investment announcements in Mexico this year, totaling $36.153 billion, according to the Ministry of Economy (SE).

The agency “expects this amount to flow into the country over the next two to three years,” the report said, covering the period from January 1 to April 15. The majority of this investment, 54%, comes from the United States ($19.475 billion), followed by Germany (15%, or $5.458 billion) and Argentina (12%, equivalent to $4.395 billion).

“Ninety percent (of the total) comes from eight of the top 10 FDI (foreign direct investment) origin countries in Mexico at the end of 2023, confirming the private sector’s confidence in continuing to invest and expand in the country,” SE said.

Most of the investments are in the manufacturing sector – 54% of the total, amounting to $19.674 billion. The manufacturing industries include: beverages (53%), auto parts (18%), iron and steel (10%), automobiles (10%), electronic components (2%) and others (7%). Of the total expected 47,702 new jobs, the auto industry accounts for 48%, or 23,079.

The Ministry of Economy ranked the transport sector in second place ($5.013 billion), followed by media ($4.963 billion), trade ($4.92 billion) and energy ($1.257 billion). The rest of the list is completed by sectors such as services, construction, temporary accommodation services and others.

The investment comes as foreign direct investment into Mexico in 2023 rose 27% year-over-year to more than $36 billion.

Analysts agree that Mexico is one of the countries benefiting most from “near-shoring” – a phenomenon in which companies move their production chains to be closer to their main markets, particularly from Asia to North America.

#Mexico #beneficiary #nearshoring
2024-04-29 01:24:45

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.