In this week’s roundup, Latin America and the Caribbean saw a rebound in foreign direct investment (FDI) in 2022, reaching record levels. Meanwhile, the Federal Superior Auditor’s Office (ASF) presented the audit of public expenses by the federal government in 2022 to the Chamber of Deputies, indicating that the federal government spent MX$253.8 billion (US$14.8 billion) from the Budgetary Revenue Stabilization Fund (FEIP).
Finally, the Mexican Association of Private Industrial Parks (AMPIP) and BBVA surveyed business executives on their views and perspectives on nearshoring, showing that toward 2025, the demand for industrial space is expected to grow.
Interested in more? Read more in this week’s roundup!
Latin America and the Caribbean saw a FDI rebound in 2022. A total of US$224.579 billion in FDI entered the region, 55.2% more than in 2021 and the highest value since records have been kept. FDI inflows to the area had not exceeded US$200 billion since 2013, making the 2022 recovery an important milestone for investment in the last decade. In Mexico, services have surpassed manufacturing as the main destination for FDI since 2017, a trend that continued in 2022.
ASF’s audit of public expenses by the federal government indicates that the federal government spent MX$253.8 billion (US$14.8 billion) from the Budgetary Revenue Stabilization Fund (FEIP) to cover the expenses foreseen in the expenditure budget following economic slowdowns in 2019 and 2020. According to the body in charge of overseeing government spending in Mexico, domestic and foreign debt went from MX$8.3 trillion (US$487.6 billion) at the close of 2018 to MX$11.63 trillion (US$681.9 billion) on Dec. 31, 2022. As of that month, the public debt balance stood at MX$9.4 billion (US$550.9 million) for internal debt and MX$2.23 trillion (US$131 billion) for external debt.
AMPIP and BBVA surveyed business executives on their views and perspectives on nearshoring. About 25% of the companies surveyed reported that they expect to benefit from nearshoring, found the survey. The regions that are expected to benefit the most are the northeast and northwest of Mexico. However, to continue growing, drawbacks reported by companies in industrial parks must be addressed, including supplying energy from clean sources and at competitive prices.
There are three main reasons behind the failure of early-stage startups: access to funding, lack of product-market fit and team-related issues, writes Patricia Florencia, Founder and CFO, Pilou. Many gender biases significantly impact female founders that need to be addressed to have a more inclusive and equitable entrepreneurial ecosystem, she adds. In her piece, she double-clicks on team-related challenges, specifically those concerning co-founders.