Despite setting a record level of more than US$36 billion, the participation of foreign flows in the country's gross fixed capital formation fell to 8.2%, its lowest level since 2012.
In 2023, the Foreign Direct Investment (FDI) captured by Mexico set a record, however, its contribution to the total fixed investment made in the country fell to 8.2% from the 11.1% contribution it had in 2022, which also registered its lowest participation since 7.3% in 2012, show the figures from the Ministry of Economy.
In absolute amounts, FDI in 2023 amounted to a historical maximum of US$ 36,058 million, while in the country the Gross Fixed Capital Formation (GFCF) - which is how fixed investment is identified in the national accounts - stood in current US$ 438,140 million.
Yesterday, Tuesday, the Ministry of Economy reported that the preliminary FDI captured by Mexico from January to March totaled US$ 20,313 million, a figure that also marked a record for a first quarter.
Since 2022, but more markedly in 2023, private sector actors and the government itself have expressed that the phenomenon of nearshoring has the potential to increase FDI.
Just last May 6, while visiting Mexico, Carlos Torres Vila, president of BBVA at a global level, stated at the bank's National Meeting of Regional Directors that nearshoring can double FDI in the coming years.
“ Nearshoring is already showing its first results with more exports and is bringing significant investments,” he said.
In January, the International Chamber of Commerce (ICC) predicted, for its part, that Mexico's FDI intake could rise to US$40 billion this year thanks to the relocation of investments.
However, the lower participation of FDI in the investment made in the country adds to another fact that has raised doubts regarding the impact that the phenomenon is really having.
Last year, the new investment component of total FDI flows to Mexico fell to 13% of the total, its lowest level in more than a decade.
That proportion was even lower during the first quarter of 2024, remaining at 3%, so that 97% of FDI originated in the reinvestment of profits, which refer to the profits of foreign companies that remain in Mexico and do not They are sent abroad.
“Given the nearshoring narrative, recent data continue to make it difficult to argue that new companies are arriving in Mexico and it is rather the companies already established in the country that are explaining the FDI figures,” Citibanamex said in a brief report this Wednesday. .
Less weight in GDP
The correlate of a lower participation of FDI in the investment spending of the Mexican economy is also a lower percentage of the Gross Domestic Product (GDP).
So in 2023 the flow of foreign productive investments was equivalent to 2% of GDP, a figure that is also the lowest since 1.7% in 2012 and is far from the peak of 3.8% in 2001 or 3.6%. % of 2013.
Mexico's records in attracting FDI are notable in the midst of the uncertainty sown by the Covid-19 pandemic and that stopped capital flows to other nations, however, our country is still far from the records of capital flows received. by countries with a similar level of development, such as Brazil.
According to data from the United Nations Conference on Trade and Development (UNCTAD), in 2022, Mexico captured 2.7% of global FDI, while Brazil received 6.6% and China 14.6%.
In the last decade, Mexico's participation has remained stable, achieving its best record in 2013, with a share of 3.3% of the FDI carried out in the world.
