Foreign Direct Investment grows 4.2% in 2019: Ministry of Economy

The Secretariat of Economy (SE) announced that, with preliminary figures, from January to December 2019 were captured 32,921 million dollars of Foreign Direct Investment (FDI), in other words, 4.2 percent more than the captured in the same period in 2018, which was 31,604 million dollars.

Foreign Direct Investment grows. Stock photo
Foreign Direct Investment grows. Stock photo

"If we compare the total FDI captured in 2019, with the preliminary figures reported for the same period in 2018 which was $31.604 billion dollars, we see an increase of 4.2 percent. The increase was concentrated in the areas of reinvestment and new investment, although the subsequent adjustment of the figures could change this result," it said.

In a statement, the agency explained that the foreign investment figures will be adjusted when there is more information on the operations of the period. It said that the result of 2019 is derived net by company or trust from the difference of $41,900 billion dollars recorded as inflows and by $8,979 billion in outflows.

We recommend you: Halla Eni field with 300 million barrels of oilThe agency headed by Graciela Marquez Colin said that FDI registered for 2019 came from 4,353 companies with foreign capital participation, 3,776 trust contracts, and 27 foreign companies and is integrated as follows:

Type of investment (source of financing)

Reinvestment of profits, 53.1 percent.

New investments, 39.0 percent.

Intercompany accounts, 7.9 percent.

Sector

Manufacturing, 47.2 percent.

Financial and insurance services, 15.3 percent.

Trade, 9.7 percent.

Mass media information, 5.5 percent.

Mining, 5.5 percent.

Power generation, water, and gas, 3.8 percent.

Remaining sectors, 13.0 percent.

Country of origin

The United States, 36.8 percent.

Spain, 12.1 percent.

Canada, 9.7 percent.

Germany, 9.2 percent.

Italy, 4.5 percent.

Other countries, 27.7 percent.

"The amounts reported only consider investments made and formally notified to the national registry of foreign investment of the Ministry of Economy, hence its preliminary nature and that suffer updates in subsequent quarters," the agency said.

The Ministry explained that the methodology to determine FDI is based on international standards contained in the balance of payments manual of the International Monetary Fund (IMF) and the framework definition of foreign direct investment of the Organization for Economic Cooperation and Development (OECD).

"The FDI figures were reviewed jointly by the Secretariat of Economy and the Bank of Mexico and will be integrated into the balance of payments report of the latter," said the federal agency.

By Mexicanist