Economy & Business - March 2022

President’s discourse limits investment prospects in Mexico

Foreign direct investment (FDI) net flows to Mexico totalled US$31.6bn in 2021, according to preliminary figures released by Mexico’s economy ministry (SE) on 21 February. The SE highlighted that this was 8.7% higher than the figures reported for 2020 (US$29.1bn). FDI is essential for boosting Mexico’s economy in the wake of the coronavirus (Covid-19) pandemic. However, despite increases, investment may fail to reach its potential given President Andrés Manuel López Obrador’s increasingly hostile rhetoric regarding foreign investors and apparent intent on nationalising key sectors.

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