It will become essential in the post-pandemic; The country would be losing a great opportunity to, in the medium and long term, recover from not consolidating it
As is widely known, leftist regimes tend to be populist and nationalist when it comes to sensitive issues, such as employment, security, and trade.
The government of President Andrés Manuel López Obrador has sought to strengthen the left-wing bloc with countries similar in ideology, such as Argentina, Venezuela, or Russia.
Situations like this generate distrust in sectors such as Foreign Direct Investment, necessary for the economic development of jobs and generating direct jobs in our country.
According to Business Insider Mexico, the Foreign Direct Investment (FDI) Confidence Index explains that foreign direct investment is an investment that involves a long-term relationship and reflects long-lasting interest and control by a direct foreign investor. or from a company resident in another economy.
Mexico lost, for the second time in history, its place in FDI, Kearney 2020.
The first time it happened in 2011 and in 2002 he had his best position being in third place.
FDI is a vision of where the flows of the economy will go in the next three years.
The Foreign Direct Investment Confidence Index establishes the 25 priority destinations for investment worldwide, such as the USA, Canada, or Germany, which currently occupy the first three places, respectively.
Emerging countries that are within the top 25 are China, Brazil and the United Arab Emirates. among others.
Mexico, for the second time, is left out of these 25 priority destinations, implying that it is no longer attractive for FDI. In the final weeks leading up to the pandemic, when the survey was conducted, emerging developing and frontier markets fell dramatically.
The Kearney index assesses the different issues that governments handle to rate whether or not a country is attractive for investment. An example of this is climate change and its management at the country level, which is important for investors.
Mexico, in terms of climate change, despite being in different international treaties, such as the Paris Pact, binding for decision-making both at the governmental level and for the private sector, has been boxed in a dilemma by the government federal government, which ignores the obligations acquired and continues to invest money in refineries or rescue Pemex, which has been in debt for decades and whose bonds are practically “junk” for investors.
Other factors that have intervened -in Mexico- to keep us out of investment have been the counter-energy reform and the Dos Bocas refinery.
Let us remember that for the growth of any economy – including Mexico-, in the era of recovery from the post-pandemic, which we have not yet reached due to the number of vaccinated population, foreign investment will be essential and Mexico is losing a great opportunity to, in the medium and long term, recover.