Mexico attracted $18,636 million in foreign investment in the first quarter

Foreign direct investment (FDI) received by Mexico in the first quarter of 2023 was $18.636 million, the Ministry of Economy (SE) said this Sunday.

The amount received was 4.1% less than what was recorded in the first three months of 2022, when $19.427 million was recorded.

However, the Mexican agency explained that this investment flow is 48% higher, if you do not take into account the extraordinary amounts associated with the Televisa-Univisión merger and the restructuring of Aeroméxico.

Preliminary data from the agency suggests that, excluding these transactions, more than $6 billion in FDI between January and March 2022 totaled $12,553 million.

FDI in the first quarter of the year came from 1,387 Mexican companies with foreign capital and 863 trust agreements.

90% of these foreign investments, equivalent to more than $16 billion, were part of the reinvestment of profits, while 5% corresponded to new investments and another 5% to loans and payments between companies of the same corporate group.

“The behavior seen in the first quarter of 2023 reflects investor confidence in maintaining and expanding their investment in the country,” the SE report notes.

In those first three months, the United States has established itself as Mexico’s main trading partner, leading in terms of capital flowing into the country, followed by Spain, Argentina, the Netherlands, Germany, Canada, the United Kingdom, Switzerland, Japan, and Brazil.

Meanwhile, the Ministry of Economy reported that 67% of the FDI received during this period was placed in five Mexican entities, with Mexico City being the city with the highest capture rate, with 38% of the total investment, equivalent to US$7,039 million.

Behind this was Nuevo León in the north of the country with $2,332 million, 13% of the total; followed by the state of Jalisco in Mexico’s Bajio with $1,079 million, representing 6% of all registered investments.

There were also entities like Puebla and Mexico State with $920 million and $892 million respectively.

By sector, the SE specified that 53% of FDI received in the first quarter was in Mexican manufacturing.

Investments in transport equipment, chemical industry, food industry, computer equipment, electric power equipment, metallurgy, production of beverages and tobacco products were distinguished by sub-sectors.

Another 33% were in financial services, 4% in transportation, mail and storage, and 2% in mining, construction, retail and wholesale, respectively.

EFE

Source: Aristegui Noticias

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