Companies Who Manufacture Mexico Products Receive FDI

Even with a more tepid economic forecast adjusted down from 4.6 then to 3.3 for Q1 and Q2, those who manufacture Mexico goods are still expected to have a healthy growth and Foreign Direct Investment (FDI) pattern, according to a recent statement by Economy Minister, Bruno Farrari.  Farrari further contends that even with a slower growth then initially forecast, Mexico’s economy is still slated to experience expansion between 4 and 5% for 2011.  With this outlook, Mexico is projected to draw $20 billion in FDI, an increaseover an earlier forecast.  Ongoing factors supporting the growth include proximity to America and relatively low labor costs in Mexico, both of which have significant impact on the second largest economy in Latin America.

Continuing as growth leaders, the automotive manufacturing and auto parts industries enjoyed export revenues of a staggering $64.9 billion, with crude oil and their by-products holding at $41.7 billion, remittances of $21.3 billion and tourism at $$11.9 billion.  Further contributing to a robust FDI projection for the year is the inflation trend which will keep interest rates down.  Lower interest rates position foreign investors to provide cheaper money and better returns in the long term.  In fact, the Mexican peso bonds have recently posted the largest rallies in Latin America, additionally supporting those who manufacture Mexico goods to receive needed investments.

Source: http://www.bloomberg.com/news/2011-08-22/mexico-raises-forecast-for-direct-investment-11-to-20-billion.html


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