Mexico attracted 24,831.7 million dollars of Foreign Direct Investment (FDI) in the first nine months of 2021, which represented an advance of 5.7% compared to the same period of the previous year, the Ministry of Economy reported on Monday.
The preliminary FDI registered for January-September 2021 came from: 3,259 companies with participation of foreign capital, 3,721 trust contracts and 23 foreign legal entities.
In addition, it is integrated as follows:
- By type of investment (origin of financing): through reinvestment of profits, 40.3%; for new investments, 38.4%; and by accounts between companies, 21.3%.
- By sector: manufacturing, 45.0%; mining, 14.0%; financial and insurance services, 10.9%; transportation, 10.0%; commerce, 6.0% and temporary accommodation services, 4.6%. The remaining sectors captured 9.5%.
- And by country of origin: United States, 49.6%; Spain, 10.7%; Japan, 6.3%; Germany, 5.3%; Canada, 5.2%; and other countries contributed the remaining 22.9%.
The methodology to determine FDI is based on international standards, contained both in the Balance of Payments Manual of the International Monetary Fund (IMF) and in the Framework Definition of Foreign Direct Investment of the Organization for Economic Cooperation and Development (OECD) .
The amounts reported only consider investments made and formally notified to the National Registry of Foreign Investments of the Ministry of Economy; hence its preliminary nature and the fact that it undergoes updates in successive quarters.
In abundance on the methodology, the Ministry of Economy stated that the Framework Definition of Foreign Direct Investment of the Organization for Economic Cooperation and Development (OECD) includes updates to the published information; In this sense, paragraph 665 states that “It is possible that once the estimates referring to a period (for transactions) or a specific date (in the case of positions) have been published, additional information may be available that result in revisions to initial estimates.
This new information may be the consequence of the declaration of higher quality data by the informants, of improvements incorporated to the data in the compilation process or of other types of investigations that are carried out. ” Furthermore, in paragraph 659 it is stated that “To minimize the risk of underestimation of the FDI figures, the initial estimates require several updates and validations.”