Mexico, the fourth most attractive economy for FDI in the US


Almost 30 percent of business leaders believe that global economic growth will fall in the next 12 months, about six times less than last year (5 percent), according to the CEO Survey, conducted by the consultancy PwC.

Consulting firm points out that Mexico maintains the same percentage of investment destination as in 2018. Global uncertainty persists due to commercial tensions.
Consulting firm points out that Mexico maintains the same percentage of investment destination as in 2018. Global uncertainty persists due to commercial tensions.

As for Mexico, it maintained the same percentage of investment destination as in 2018 (4 percent); while Japan, Canada, Russia and Hong Kong fell on the list, getting fewer responses compared to last year. Mexico ranks fourth in terms of the most important territories for the growth of US companies, with 11 percent of CEO responses. China (39 percent), the United Kingdom (16 percent) and Germany (12 percent) complete the first places in the ranking.

Apparently, the CEOs of North America are still the most confident to look at their income, since the perspective (three years): globally, sees a 9 percent drop in the percentage of CEOs who are "very confident" in revenue growth and prospects for the next three years.

North America, Central and Eastern Europe, Asia-Pacific, Africa and the Middle East have reached historic lows. Western Europe and Latin America have many more perspectives. The CEOs of America, once again, report more precipitous loss of high confidence, while the lowest level reported is, as in 2018, in Central and Eastern Europe.

Despite this, not all results are pessimistic: 42 percent continue to see an improvement, although it was significantly reduced, compared with 57 percent in 2018. In general, the views of CEOs in this area are more polarized. year, but registering a downward trend.

Meanwhile, the most dramatic change was that of executives in North America, where optimism fell from 63 percent in 2018 to 37 percent, probably due to the fading of fiscal stimuli and the incipient trade tensions. In the Middle East, there is also a large decrease, from 52 to 28 percent, caused by the increase in regional economic uncertainty.

The rest of the optimism in the business leaders has also affected the growth plans outside the borders. The United States maintains its position as the first market in terms of growth, with 27 percent in the quota, but falls significantly from 46 percent in 2018.

The second most attractive economy is China, which also saw its growth reduced to 24 percent, compared to 33 percent in the previous period. India, is the upward power of the current ranking, recently surpassing China as the great fast-growing economy.

The restlessness of the world economic growth is reducing the confidence of the CEOs regarding the perspectives of their own companies in the short term. Thirty-five percent of CEOs said they were "very confident" of their organization's GDP prospects in the next 12 months, up from 42 percent last year.

The US will maintain its leadership as a developing market in the next 12 months. Even many CEOs are looking at other markets, which is reflected in the drastic fall in the proportion of votes in favor of the northern neighbor, from 46 percent in 2018 to only 27 percent in 2019. China narrowed the gap, but it also saw its popularity fall, from 33 percent in 2018 to 24 percent in 2019.

As a result of the ongoing conflict with the United States, Chinese leaders have diversified their investments for growth, with only 17 percent going to the United States, falling from 59 percent last year.

On the other hand, 85 percent of CEOs believe that Artificial Intelligence will dramatically change their business in the next five years.

via: La Razon