Mexico is not among the most attractive countries for foreign direct investment

For the third year in a row, Mexico has been excluded from classification Among the 25 most attractive countries for attracting foreign direct investment (Explosive device) In 2022, this Because Institutional changes s fixes like power The international consultant and specialist said that the government is seeking to impose it Kearney.

In a conference to display FDI Confidence Index 2022, Director General of the organization, Ricardo Hanin Huasaid that Investors consider it Mexico It is less attractive to take your investments resulting from changes in corporate rules and international issues such as the war between Russia and Ukraine.

“although Mexico Improving its confidence index, it remains among the world’s 25 most attractive countries for mentoring direct foreign investment. Expectations of institutional changes and reforms that give competitiveness to the modern economy, such as energy, as well as investments in Infrastructure For the federal government, are issues that conflict with the positive attitudes of Mexico with global investors.

He said that the effects of electrical reform do not contribute to the development and growth Mexicoas it would be a disadvantage for both national and international private sector firms, which could drive more investment away from Mexican soil if the reform is passed as assured.

To maintain the position of the Federal Electricity Authority (palm) and industry and all the competitive elements that we are talking about in the sector of the modern economy Mexicothey will have a gap of competitive disadvantage, they will make continuing to generate investments less attractive, especially for the next investments, for 10 or 15 years, we will lose the overall position, if the counter and warn that the reform succeeds in the country.”

He pointed out that the factors that harm Competitiveness and grow Investing in Mexico It’s increased pressure toward independent institutions, setbacks in public policies, management’s proposal on electricity reform and a drop in proactive activity to boost growth.

He noted that since the launch of FDI Confidence Index at 1998Mexico has found itself outside the top 25 only four times: 2011, 2020, 2021 and 2022.

In 2019, Mexico fell eight places in classification One of the most attractive countries for foreign direct investment17 to 25 since the study was published in 2012, and this is derived from the secondary effects of the 2009 global economic recession, and instability, is that the national territory did not appear in the list.

In 2004, Mexico It was ranked 22nd, while in 2012, the national lands were not among the ranking of countries attractive to invest in; In 2010, it was at its highest point, coming in at number eight and by 2019 it was at number 25.

I explained it in detail United State It is the first country in classification made and where Germany Advance to second place, while Canada Reaching the third place Japan moved to fourth place, and United kingdom All the way to fifth place.

“The top ten markets are almost flat, except for China who reaches Tenth place. Developed markets provide greater stability and security for investors whose strategies and outcomes have been affected by the pandemic. “Transparency in government regulations and the lack of corruption are among the factors,” he added.

The specialist explained that the results of the study indicate an increase in optimism after 2021, as more than three quarters (76 percent) of companies plan to increase their size. Explosive device in the next three years compared to 67 per cent in the previous year.

“They were also surprised by the invasion of Iraq,” he added Russia to Ukraine. The study was conducted mainly in January. Tensions between Russia and Ukraine were already present at the beginning of 2022, but the results of the study indicate that investors remained relatively confident in the situation with 50% more optimistic about investing in the region than last year.”

He added that investors cited significant concerns about rising commodity prices, geopolitical tensions and inflation. “These factors were exacerbated by the crisis in Ukraine,” he added.

MRA

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