Following the above link regarding Wall Street Journal recent article about foreign direct investment predictions in Mexico, I found it very interesting how the trend looks positive based on the expansion of strong transnational corporations seeking to improve efficiency on their manufacturing operations and it’s precisely manufacturing where Mexico is really competitive on, not only for its location but for the high quality and culture of providing services, against some might think, it is true, investing in Mexico represents large opportunities.
Now, while in my perspective it is an ambitious prediction to expect a growth of 161% on FDI ( Foreign Direct Investment ) for current year, given the fact that first quarter only soared by 9% year over year, the trend is positive though and improving as first quarter of 2012 showed a decline of 38% versus previous year.
Scope of Investments.
Despite some investments fall on foreign buyouts or Mexican companies acquisitions like Grupo Modelo, the sellers will now have the decision to reinvest in Mexico or abroad. That might be a roadblock to achieve the ambitious predictions of reaching 35 to $40 billion this year. Although not impossible since going back to 2008, the country almost hit $28 billion of foreign investment.
Besides the just released new investment from Lego at Northern Mexico and Mondelez International Foods, it is also remarkable the great and soaring manufacturing industries of aerospace parts based at center Mexico’s State of Queretaro hosting huge manufacture firms as Bombardier and GE.
This positive investment trends will benefit not only Queretaro but also neighboring states like Guanajuato and heading little to north with Aguascalientes and even Chihuahua as we’ve read within the article. So this might lead Mexican authorities to think where to be heading for a construction of a new international air terminal complementing the one in Mexico City.
One conclusion would be at this point that from every perspective there are positive predictions to Mexican economy so are to all players in business travel, leisure and overall tourism industries as airlines serving routes Mexico, hotels and all travel and tourism related entities. The hope is to keep the trend positive in a sustainable long-term range.
Source : The Wall Street Journal, Central Bank of México.
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