International Finance Groups Say Yes to Foreign Investment in Mexico
Monday, November 21, 2011 International
Finance Groups Say Yes to Foreign Investment in Mexico
By
Marissa Sánchez
Direct
foreign investment (DFI) in Mexico
has declined by 67.3%, compared with
the results of 2010. It went from $7,648.6 billion in the second
quarter of last year
to $5,149.1 billion, according to
the Secretariat of Economy.
However, specialists from Ernst &
Young expect
fast-growing markets to grow in
2011, altogether 6.2% - nearly four times the 1.6% growth reported by
the European area.
Ernst & Young, in its quarterly forecast
report for rapidly growing markets (RGMF), says that DFI to emerging
markets (among them Mexico)
increased from $205 billion in 2000, to $444 billion in 2010. They also
received about 50% of
global income from this type of
investment.
The international consultant warns that despite weak
growth in advanced
economies - a phenomenon that
invariably affects the development of rapidly growing markets - the
25-member country bloc will
have to ante up for domestic
consumption.
Regarding next year, it forecasts the bloc of emerging economies to increase
5.9%, and the European bloc to fall 1.1%.
Another
report on DFI, this from BBVA, notes that of the emerging countries
China received the greatest amount
of DFI in 2010, although Mexico, Indonesia, Singapore, Brazil and Hong
Kong stood out for
their dynamism.
According to
the report of the Economic Studies Service of BBVA, Mexico's recovery of
DFI has
been relatively faster than the
countries that are traditionally considered as strong competitors,
China, Russia and India.
BBVA reported, as have most recent opinion polls, that Mexico's recovery shows it is a relevant and attractive
destination for investment.
HSBC bank executives stressed the benefits of investing in Mexico: its strong economy,
skilled labor, privileged geographical position, and infrastructure investment.
The
HSBC general manager for Europe,
Asia and Latin America, Sandy
Flockhart, said that "Mexico is a very attractive destination, and it
offers access to
the U.S. market."
Flockhart said that by 2050 Mexico will be ranked
10th among the world's leading economies.
----------
Mexican Business Web (MBW), Mexico, DF; MBW translation (edited)