Mexico is one of the emerging countries most open to foreign direct investment. According to the 2013 World Investment Report published by UNCTAD, Mexico is the third largest FDI recipient in Latin-America and the Caribbean, after Brazil, the British Virgin Islands, Chile and Colombia. In 2013, FDI flux into the country reached their record level of 35.2b USD, which equals almost the double of their levels in 2012. This is mainly due to the aquisition by a Belgian brewery Anheuser-Busch inBev of the Mexican bear giant Grupo Modelo for the sum of 13 billion USD.
However, in recent years, Mexico's competitiveness has been hampered by the growth of organized crime and the lack of reforms in the energy sector, professional services and taxation. Corruption and administrative inefficiency are also major problems.
The areas where foreign investments are concentrated the most are the border towns with the United States (where assembly factories are located), as well as the capital. The Yucatan peninsula continues to receive foreign investments thanks to its tourism appeal. These investments come especially from the United States and Spain (mainly from the banking sector). The sectors receiving significant foreign investments are finance, automobile industry and electronics and energy sectors. The U.S. and Japan are the two largest investors.
|Mexico||Latin America & Caribbean||United States||Germany|
|Index of Transaction Transparency*||8.0||4.0||7.0||5.0|
|Index of Manager’s Responsibility**||5.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||6.0||5.0||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||23,354||17,628||38,286|
|FDI Stock (million USD)||284,611||361,234||389,083|
|Performance Index*, Ranking on 181 Economies||61||-||-|
|Potential Index**, Ranking on 177 Economies||13||-||-|
|Number of Greenfield Investments***||295||294||447|
|FDI Inwards (in % of GFCF****)||9.2||6.6||13.5|
|FDI Stock (in % of GDP)||24.3||30.5||30.9|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Public treasury funds have been made available to private companies that have been heavily affected by the crisis. Thus in November 2008, the Mexican government saved the Vitro company, one of the world's biggest glass producers, which was having liquidity problems because of its debts. The amount disbursed to save it was evaluated at 100 billion USD. The cement corporation, Cemex, in turn registered a 15 billion dollar debt, a debt which is higher than the value of the company, due to the collapse of the world construction sector.
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Last Updates: October 2014