Mexico’s Foreign Direct Investment rises 2.4%
Mexico‘s Ministry of Economy informed that FDI inflows to the country totaled 32.926 billion dollars in the January-September period, an amount 2.4% higher than the annual rate.
Investment flows are mainly focused on increasing Mexico’s productive base to produce export goods and serve the domestic market, and most of them (53%) were directed to the manufacturing sector and had the United States as their main origin (41%).
The Mexican economy was severely affected by the Covid-19 pandemic, the confinements and the economic contractions that accompanied them in other parts of the world. According to the International Monetary Fund (IMF), Mexico’s real GDP growth rate for 2021 was 4.7%, declining to 3.1% in 2022.
Analysts estimate that Mexico will reach a GDP growth rate of around 3% in 2023, depending on factors such as inflation and supply chain disruptions.
Foreign Direct Investment
Two-way trade in goods and services between the United States and Mexico totaled $863.4 billion in 2022, positioning Mexico as the second largest U.S. trading partner.
According to the Department of Commerce, U.S. exports to Mexico totaled $362.7 billion and imports from Mexico were $500.7 billion (a deficit of $138 billion).
This large volume of trade directly and indirectly supports millions of jobs in both countries.
Mexico is the first, second or third largest destination for merchandise exports from more than 30 U.S. states.
Top U.S. goods exports include electronics, vehicles, fuels, minerals, plastics and machinery.
Mexico was the second largest export market for U.S. agricultural products in 2022, with total U.S. agricultural exports to Mexico valued at more than $28 billion.
