For the second consecutive year, Mexico remained out of the 25 most attractive countries as a destination for Foreign Direct Investment by the consulting firm AT Kearney.
MEXICO CITY (Forbes) – The director of the firm in Mexico, Ricardo Haneine, pointed out that the factors that have reduced Mexico’s competitiveness are its low growth and the reversal of the energy reform.
In this sense, he considered that the recent reform to the electricity sector does not create incentives, is counterproductive, and may affect the entire industry. “Instead of moving forward, the only thing this reinforces is to make the outlook for attracting investment in a sector that is fundamental for the industry more negative,” he explained.
Likewise, he considered that the labor initiative on outsourcing has a negative influence, given that this limits the flexibility of the market.
Besides the cancellation of Mexico’s New International Airport, the federal government’s insistence on investments with low economic impacts such as the Dos Bocas refinery, the Santa Lucia airport, and the Mayan Train are also affecting the country.
The specialist considered that the country needs to focus its efforts to recover investors’ confidence, with factors such as governance and transparency. In addition to this, Haneine sees opportunities in foreign trade. “The trade tensions between the United States-China and the ratification of the T-MEC have been opening opportunities in Mexico to attract investments focused on manufacturing exports to the United States, which can be enhanced if a proactive and coordinated strategy is followed in Mexico,” he said.
In the new edition of the ranking, the United States topped the list.
The 25 most attractive countries for foreign investment:
United States
Canada
Germany
United Kingdom
Japan
France
Australia
Italy
Spain
Switzerland
Netherlands
China
New Zealand
Sweden
United Arab Emirates
Singapore
Belgium
Norway
Austria
Portugal
South Korea
Denmark
Ireland
Brazil
Finland
Kearney’s Global Business Policy Council also revealed a significant drop in overall optimism about the global economy from “pre-pandemic” levels and “initial” pandemic levels last year.
According to the global consulting firm’s new report, investors reported being more cautious as they prepare for a prolonged recovery in investment flows.
In this regard, it specifies that investors appear disciplined one year into the pandemic and its disruption of the global economy. “In last year’s survey, investors showed a strong level of optimism about the global economy and their investment prospects, and many were surprised by the Covid-19 disruption that brought the world to an economic standstill.”
57% of investors say they are optimistic about the three-year global economic outlook, much lower than last year’s corresponding figure of 72%
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