Foreign direct investment to Mexico falls 11.7% in 2020 due to COVID-19

Foreign Direct Investment (FDI) to Mexico fell by 11.7 percent in 2020, reaching 29,079 million dollars, affected by the pandemic of the disease of the new
Coronavirus (COVID-19), the Secretariat (ministry) of Economy reported today in a preliminary way.

According to the preliminary calculations of the government portfolio, last year’s figure contrasted with the 32,921 million dollars registered in 2019.

In 2020, FDI flows originated from the United States with 39.1 percent of the total, Canada with 14.5 percent, Spain with 13.7 percent, Japan with 4.2 percent. and Germany with 3.5 percent, while other countries contributed the remaining 25 percent.

« Compared to the rest of the world, Mexico had a better performance in attracting FDI in the most adverse year in recent economic history, » the entity explained in a statement.

According to the United Nations Conference on Trade and Development (UNCTAD, acronym in English), global FDI flows decreased last year by 42 percent compared to 2019, the Mexican portfolio indicated based on a report from previous January.

By economic sector, FDI to Mexico was destined to manufacturing (40.6 percent), financial and insurance services (23.2 percent), transportation (9.8 percent), trade (7.7 percent) , mining (4.6 percent) and media (4.3 percent), while other sectors registered 9.8 percent of the total.

FDI came last year from 3,334 companies with participation of foreign capital, 2,725 trust contracts and 24 foreign legal entities, according to the report from the Ministry of Economy.

The Mexican economy, the second largest in Latin America after Brazil, contracted 8.3 percent in 2020, its worst performance since the 1930s, as a result of the effects of the COVID-19 pandemic.

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Xinhua Source