Mexico falls in foreign investment index

For this year, Mexico fell eight places in the Foreign Direct Investment Confidence Index A.T. Kearney and it was placed in the last place of a set of 25 countries, with respect to the number 17 that occupied in 2018.

Mexico fell eight places in the Foreign Direct Investment Trust index. Image: screenshot
Mexico fell eight places in the Foreign Direct Investment Trust index. Image: screenshot

Although the country's confidence index grew from 1.47 to 1.49, the competitiveness of the rest of the countries increased, explained Ricardo Haneine, managing partner of the global consultancy A.T. Kearney

"The fact that Mexico is in the top 25 means that it is still attractive, but there are other countries that are now more attractive."

In 2003, Mexico became the second country with the greatest attractiveness to invest within the index, but the failure of the reforms diminished the attractiveness in comparison with the rest of the nations.

Currently, global uncertainty has reduced the competitiveness of large economic blocs such as the FTA and the interest in investing in large high-consumption countries has increased.

"Many countries have shifted their focus to a more nationalistic one, although there are others that are open to continuing participating in trade."

At a national level, the lower economic growth of Mexico has generated uncertainty about the advantages of investing in the country,

The lifting of union groups, the downward perspective of the sovereign debt of the country and the lack of a program to promote technological and innovation capabilities, have prevented a high growth of the Confidence Index.

Mexico maintains strengths against Latin American countries for its fiscal discipline, the autonomy of the Bank of Mexico and its international trade agreements. In the future with the approval of international treaties, it is likely that the country's attractiveness will increase.

"The pending ratification of the T-MEC, with the entry into force of the CPTPP, as well as a new trade agreement with the European Union can help it obtain more foreign investment."

The Foreign Direct Investment Confidence Index is an annual survey of the world's leading business leaders.

According to the index, the main factors to invest are tax rates, technological and innovation capabilities, general security environment, regulatory transparency and absence of corruption and the strength of investors and property rights.

by Agency

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