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Top 5 sectors of FDI to Mexico

Among the main sectors of Foreign Direct Investment (FDI) to Mexico from January to September 2002, manufacturing captured 36.3% of total flows.

This was followed by the following sectors: transportation (14.5%), mass media (13.6%), financial services (11.6%), commerce (5.8%) and mining (4.8%).

In total, in the first nine months of 2022, the country received 32,147.4 million dollars of FDI, a growth of 29.5% compared to the same period of 2021 and with preliminary data, informed the Ministry of Economy.

During the period from 2016 to 2021, annual FDI flows to Mexico remained above 30 billion dollars.

FDI

In particular, during 2021, an increase in FDI flows was observed with respect to 2020, according to preliminary data.

The main FDI recipient sectors during the 2016-2021 period were manufacturing industries, followed by financial and insurance services, trade, transportation, mining and power generation.

In terms of the origin of FDI flows, the main investing countries are the United States, which continues to lead the list with 47.5 percent of FDI in 2021, followed by Spain (13.7 percent) and Canada (6.5 percent).

Context

The Mexican balance of payments current account was moderately in deficit during 2017-2019, but experienced a sizeable surplus in 2020, before returning to a deficit, albeit a moderate one, in 2021.

The Covid-19 pandemic caused a sharp contraction in exports and imports of goods and services in 2020.

However, the drop in imports was larger, resulting in a balance of payments current account surplus of 26.21 billion or 2.4% of GDP.

In 2021, the trade balance recorded a deficit of $14.491 billion (0.9% of GDP) and a current account deficit of 0.4% of GDP.

The evolution of the financial account allowed for an accumulation of reserves during most of the period.

In the last five years, the main FDI recipient sectors were manufacturing, financial and insurance services, commerce, transportation, mining and power generation.

FDI figures were jointly reviewed by the Ministry of Economy and Banco de México, and will be integrated into the latter’s Balance of Payments Report.

 

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