Mexico expects $40 billion in near-term investment this year, up from the $30 billion previously forecast.
“In 2023, more than 60 new investments have been announced, and it is estimated that the demand for near transport in Mexico represents 50% of the total demand in Latin America,” Undersecretary of Finance Gabriel Iorio wrote in a column for The Economista.
In June, the government expected more investments to come and add to the potential.
“20 companies had announced investments close to $13 billion, of which 54 percent were related to the auto industry. The highlights are Tesla and BMW’s plans to expand operations and produce electric vehicles in the country,” Finance Minister Rogelio Ram Ocheriz de la O said.
“In most specialized analyses, it is estimated over and over again that Mexico will account for half of the resettlement flow that would reach Latin America,” Iorio wrote.
“The major reason Mexico is appealing is its closeness to the US. We share a border with the United States, but it is one with great economic integration, and most crucially, we have comparable corporate cultures and time zones, which improves decision-making and operations,” Yorio remarked.
“The second is stability, which is reflected in qualified talent, a strong financial system, and strong technological development, which have enhanced the country’s attractiveness to companies,” Yorio noted.
“Free trade agreements are also essential. Currently, our country is one of the countries most open to international trade, but above all, we are allies of the United States and Canada in one of the largest economic blocs,” according to Yorio.
Mexico’s share of US imports reached 15.2% in April, overtaking China.
Last year, trade between the US and Mexico reached a record high of US$780 billion, according to official data.
Mexico’s Ministry of the Economy is promoting the mega project, which marks the country’s first inter-ocean link between the port of Salina Cruz on the Pacific coast and the port of Coatzacoalcos on the Gulf coast.
