Home Business-newBusiness Ministry of Economy estimates that nearshoring will bring 36 billion USD to Mexico in the next 3 years

Ministry of Economy estimates that nearshoring will bring 36 billion USD to Mexico in the next 3 years

by Yucatan Times
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Foreign companies have made 93 investment announcements for Mexico so far this year with a total expectation of 36.1 billion US dollars, the Ministry of Economy (SE) reported on Sunday, April 21st.

The agency “expects that this amount will enter the country in the next two or three years,” according to a report that covered from January 1 to April 15.

The majority of this investment would come from the United States, with a total of 19.4 billion US dollars (54 percent); followed by Germany, with 5.4 billion US dollars (15 percent); and Argentina, with 4.3 billion US dollars (12 percent).

“90 percent (of the total amount) comes from eight of the top 10 countries of origin with FDI (foreign direct investment) in Mexico at the end of 2023, which confirms the confidence of the private sector to continue investing and expanding in the country ” the statment says.

The manufacturing sector accounts for the majority of the investment, 54 percent of the total, which represents 19.6 billion US dollars.

Within the manufacturing sector, the breakdown is as follows: beverage industries (53 percent), auto parts (18 percent), iron and steel (10 percent), automobiles (10 percent), electronic components (2 percent) and others stand out ( 7 percent).

The generation of 47,702 new jobs is expected, with the automotive industry concentrating 48 percent with 23,079 direct jobs.

The Ministry of Economy listed the transportation sector in second place (5 billion US dollars), mass media (4,9 billion US dollars), commerce (4 billion dollars), and energy (1.2 billion US dollars).

The rest of the list is completed by sectors such as services, construction, temporary accommodation and others.
These investments are announced after the 27 percent year-on-year growth of FDI in 2023 in Mexico to a record of more than 36 billion dollars.

Analysts agree that Mexico is one of the countries that most benefits from ‘nearshoring’, a phenomenon in which companies move their production chains to be closer to their main markets, in particular, from Asia to North America.

TYT Newsroom

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