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Mexico's Economy on Track Due to Strong Foreign Direct Investment

FDI in Mexico Rises 10.5 Percent, totaling $4.8 Billion in First Quarter of 2011

MEXICO CITY, May 25, 2011 /PRNewswire-USNewswire/ -- Foreign direct investment (FDI) in Mexico rose to $4.8 billion in the first quarter of 2011, an increase of 10.5 percent from the same period in 2010, according to Mexico's Ministry of Economy. Foreign companies increased investments in Mexican business projects by 13 percent in the early months of 2011.  

The United States accounted for 85 percent of foreign direct investment, followed by Switzerland with 8 percent, and Canadaand Spain at more than 2 percent.  Manufacturing captured more than 54 percent of foreign investment money, followed by commerce with 18 percent and mining with 12 percent. $1.36 billion was in new investments, $3.2 billion reinvested profits and$230 million was inter-company accounts.

On May 16, in a meeting between Mexico President Felipe Calderon and several multinational business leaders, Carlos Guzman, head of ProMexico, stated that Mexico has shown clear signs of economic growth and recovery, and that it is an excellent time to capitalize on this trend. He pointed out that according to the United Nation's Economic Commission for Latin America, FDI in Mexico grew 16.6 percent in 2010, which was well above the 9.7 percent average growth of FDI in emerging economies.

He further noted that Mexico not only stands out as a manufacturing center in specialized sectors, but also offers excellent opportunities for value-added industries as seen in the aerospace industry. He concluded that Mexico is consolidating itself as one of the most competitive nations in the world.

Several U.S. companies have recently announced plans to invest in Mexico, including Wal-Mart de Mexico, which stated on May 23 that it planned to invest more than $178.9 million in Mexico to modernize its logistics network and open 50 new stores.  More than 3,800 people will be hired due to this expansion plan.

In comparison, foreign investment in Mexico totaled $4.33 billion in the first quarter of 2010.

 

SOURCE Ministry of the Economy of Mexico


Published Monday, May 30, 2011 8:15 AM by Kanoa Biondolillo

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