Despite the fact that last year Mexico had its worst crisis in 90 years, the country managed to enter the top 10 of the countries with the highest inflows of foreign capital, according to data published by the United Nations Conference on Trade and Commerce. Development (UNCTAD).
Mexico managed to attract $ 29.1 billion in Foreign Direct Investment (FDI) and ranked ninth worldwide. It is worth mentioning that in 2019, it attracted 34,000 million dollars for this concept.
The first 10 countries, recipients of FDI, are: the United States, China, Hong Kong, Singapore, India, Luxembourg, Germany, Ireland, Mexico and Switzerland; Brazil (6th in 2019) and Canada (10th in 2019) fell outside the top 10, ranking 11th and 13th, respectively.
Of the 10 countries receiving FDI, only Hong Kong, India, Luxembourg and Switzerland registered a higher amount in 2020 compared to 2019.
The recovery of FDI will be uneven, warns the United Nations Conference for Trade and Development. Developed economies are expected to drive global foreign direct investment growth through strong cross-border M&A activity, as well as support for large-scale public investment.
FDI inflows into Asia will remain resilient as the region has emerged as an attractive destination for international investment during the pandemic. A substantial recovery in FDI in Africa and Latin America and the Caribbean is unlikely in the short term.
As for Latin America and the Caribbean, Mexico was the main recipient of FDI, followed by Brazil ($ 24.8 billion), Colombia ($ 7.7 billion), Chile ($ 8.4 billion) and Argentina ($ 4.1 billion).
UNCTAD estimates that the region will continue to have low levels of foreign direct investment this year and that it will not return to pre-pandemic levels before 2023.
The outlook is highly uncertain and will depend on factors such as the pace of economic recovery and the possibility of flare-ups, the potential impact of recovery spending packages on FDI and political pressures, the conference detailed.
