Even though nearshoring has prompted the arrival of more than one company, Mexico was left out of the ranking of the 25 most attractive countries for foreign direct investment (FDI) for the fourth consecutive year, according to a study carried out by the consultancy Kearney International.
According to the firm’s managing partner in the country, Ricardo Haneine Haua, the country has limited its potential attractiveness to investors due to a lack of clarity in the management of the energy sector.
The consultant’s partner explained that Mexico throughout the current administration has reduced investment levels and at the same time prioritized infrastructure projects that do not boost productive capacity.
Haneine Haua opined that the country must redirect efforts towards productive infrastructure and thus send signals of confidence to investors.
At a press conference, the manager explained that Mexico shows a high potential to grow even more in the North American market, but it needs to boost its investment levels with respect to GDP above 22%, with a very clear and focused productive infrastructure plan.
The consultant added that it is necessary to resume the development of an open and modern market for clean and renewable energies, as well as further integrate into the traditional growth sectors in manufacturing such as the automotive, electrical, electronic, and metal-mechanic sectors, among others.
The executive considered that the Mexican Republic should position itself in the value chains of new investments in electrification in the different sectors with an emphasis on the automotive sector and its auto parts.
Haneine Haua highlighted that the results of Mexico within the Kearney study position it as the eighth most attractive country to attract FDI among emerging markets, even though it still does not appear in the global index.
According to the study, the United States ranks first for the eleventh consecutive year globally; while Canada regained second position after falling to third in 2022 and Japan moved up one position to third place.
While in the exclusive ranking for emerging markets China, India, the United Arab Emirates, Qatar, Thailand and Saudi Arabia occupy the top six positions; they are also the only emerging markets included.
The executive highlighted that within the Latin American economies, Brazil, Mexico and Argentina occupy positions 7, 8 and 9, respectively.
It was in 2020 that the Mexican economy left the Kearney index of 25 attractive nations for investment, something that had not happened since 2011, because of uncertainty due to changes in regulatory frameworks in various productive sectors.
These are the 25 most attractive countries for FDI:
- United Kingdom
- New Zealand
- United Arab Emirates
- South Korea
- Saudi Arabia