Mexican Manufacturers To Enjoy FDI Increase

Mexican Manufacturers gain in anticipated Foreign Direct Investment (FDI) projections as tallied by numerous consultants reporting to Bruno Ferrari, Mexico’s Economy Minister.  Mexico is likely to see as much as $20 billion, an 11% increase over earlier estimates, from sources looking for best places to invest around the world.  Ferrari indicated in a recent interview that as the 2nd largest Latin economy, Mexico’s proximity to the U.S., lower labor rates, along with educating more engineers, are among several factors contributing to the FDI attraction.

Also supporting a common Mexican manufacturer pattern, the automotive industry continues to entice large investment outlays of $400 million each for the likes of Volkswagen, General Motors, and Nissan.  Honda is projected to up the ante with an $800 million investment in increased capacity.  The trickle sideways (and down) affect for parts production will also fuel the Mexican manufacturer increase.  Additionally, since the rate of growth in Mexico’s economy is expected to slow (resulting in a 5-year low inflation rate) interest rates will likewise be reduced—a clear advantage for investors.  All told, a median estimate by approximately 19 economists project Mexico’s economy to grow by a healthy 3.6%, a continued benefit to any Mexican manufacturer.

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


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