Home Business-newBusiness Mexico falls from place 17 to 25 in the index of Direct Foreign Investment

Mexico falls from place 17 to 25 in the index of Direct Foreign Investment

by Yucatan Times
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A.T. Kearney is a leading global management consulting firm with more than 3,600 people working in more than 40 countries. They work with more than three-quarters of the Fortune Global 500, as well as with the most influential governmental and non-profit organizations. Since their arrival in Mexico, they have stood out as an important top management consulting firm, operating under the concept of an integrated global firm.

Mexico’s economy had one of its biggest declines in the 2019 Foreign Direct Investment Confidence Index prepared by A.T. Kearney, up to 25th place in the list, eight positions lower than the previous year when it was ranked 17th.

“The most dissapointing countries were Mexico, which fell from 17 to 25, India descended 5 positions and Switzerland 4,” said the CEO of A.T. Kearney Mexico, Ricardo Haneine.

According to A.T. Kearney, some of the factors that create uncertainty about investing in Mexico are: Reduction of the expectation of economic growth for 2019 and 2020. Position of the AMLO administration on structural reforms of the energy sector and the reduction of the rhythm of growth of gross fixed investment. The recent disagreements and uprisings of unions and labor groups; the evaluation of the perspective of Mexico’s sovereign debt, as well as the lack of a program to promote technological capabilities and innovation.

However other factors that could generate more attractiveness are: the prompt ratification of the Treaty between Mexico, the United States and Canada (T-MEC), the entry into force of the Comprehensive and Progressive Trans-Pacific Partnership Treaty (CPTPP) and the probable ratification of the Free Trade Agreement update Trade of the European Union with Mexico (TLCUEM), all these strategical alliances could integrate Mexico into the global economy and facilitate the entry of more FDI into our country.

Source: A.T. Kearney

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