Mexico Manufacturing Among Countries Trailing Direct Investment
Mexico Manufacturing, along with several developing economies, moved into the top 20 in the world for direct cross-border investment strategies, according to a recent report by a United Nations Conference on Trade & Development. While encouraging, investment still resides at pre-crisis levels the report further noted. Yet, Mexico manufacturers have still benefited from a 56% increase in direct investment, along with the rest of Latin America increases.
Concerns still remain, however, on the global financial scene. The United Nations does not predict a return to pre-crisis levels of investment until 2013. This is due to the mitigating factors of ‘perceived’ risks and regulatory uncertainty, listed below:
· Unresolved European debt
· Unpredictability of economic governance bodies
· Rising Inflation.
Cross-border investment forecasts have been scaled back yet developing economies such as Russia, Brazil, China, Singapore, and Mexico are sustaining stronger rebounds. For example, Mexico manufacturing enjoys greater transnational corporations’ engagement as a transitioning economy due to a broadening array of strategies. In fact, the U.S. #1 investment position in both inflows and outflows, increases of 49% and 16% respectively, will likely continue to stimulate developing economics such as that found in Mexico manufacturing.