Foreign Direct Investment (FDI) from January to September 2021 captured more than 24,831 million dollars, which represents a year-on-year increase of 5.7% according to preliminary figures from the Ministry of Economy (SE).

Mexico, as an economic power, is a diversified economy, among which we could mention the market size of a relatively young population, where the average age is around 26 years. This demographic bonus offers the possibility of saving and investment, which helps to detonate the country's economic growth potential.

1.- Location. Its excellent geographical status allows business opportunities either to the United States, Canada or to Latin America with advantages superior to other countries in the region.

2.- Investment legal framework. The legal framework of the signed treaties enhances not only the proximity to the demand, but also serves as the basis for the sustained effort towards internationalization, where the main entities of the country compete in a healthy way. In addition to this, Mexico has 14 free trade agreements with more than 50 countries that represent more than 60% of world GDP, which allows the country wide access to markets on the 5 continents.

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3.- Connectivity. Another factor is infrastructure, where ports, airports, railways and highways allow efficient connections to ensure that goods move to their final destination.

4.- Nearshoring. In addition, there are other factors such as labor costs and the decrease in transfer costs favor relocation and nearshoring on Mexican soil, thus giving greater profitability to the products.

5.- Attractive investment instruments. In addition, the country has a high degree of development of the manufacturing and logistics industry that since 2011 with the appearance of the first Fibras, created the foundation of a legal and institutional fabric that opened the opportunity for the arrival of foreign capital.

6.- Industrial infrastructure. The automotive, aerospace, metalworking, plastics, electronics and electrical, furniture and medical devices industries have strengthened in the country driven mainly by the development of business clusters that manage to integrate suppliers of a production chain while investing in staff training necessary to work in the plants.

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7.- Foreign capital. Foreign direct investment has played a fundamental role, and only from January to September 2021 Mexico captured 24,831.7 million dollars, which represents a year-on-year increase of 5.7% according to preliminary figures published by the Ministry of Economy.

For similar periods, it is the third highest amount considering online registrations, since 1999, surpassed by the levels of 2013 where 28,200 million dollars were registered, and of 2019 with 26,100 million dollars.

In summary, Mexico has a broad development horizon ahead of it in the industrial sector that must overcome the fulfillment of agreed commitments in labor and energy terms in order to achieve its true development potential, Solili emphasizes.

In Solili you can check ships available in Ciudad Juárez, Reynosa and Guadalajara

Original note