Foreign Investors Lose Confidence in MexicoBy María Fernanda Barría | Fri, 03/26/2021 - 09:39
For the second consecutive year, Mexico was left out of the foreign investment confidence ranking conducted by the consulting firm A.T. Kearney. The last time it was included was in 2019, when it ranked 25th. “Mexico continues to be unattractive for investment, an issue that is aggravated by government decisions such as the cancellation of NAIM, the construction of the Dos Bocas refinery, the Santa Lucia airport, the Mayan Train and the energy law, which is the big mistake of the current government,” said Ricardo Haneine, Director General of A.T. Kearney Mexico.
According to the report, FDI flows began to decline globally as a result of the pandemic and will not recover until 2028. As for investors, only 57 percent were optimistic about the performance of the global economy in 2021 (compared to 72 percent in 2020), which has also affected the score of the world's major economies.
In A.T. Kearney’s 2021 rankings, only three countries are considered developing: China (12th), UAE (15th) and Brazil (24th). Dominance in the list of the most developed economies is, according to Kearney, a consequence of positive economic signals, technology implementation and stable governments, especially during the health crisis.
According to the firm, lower confidence levels in emerging markets have to do with risk policies. Mexico, for example, has driven its economy through state-owned companies, leaving aside much of the private sector. In addition, banks such as J.P. Morgan and Bank of Montreal recently left the country. This behavior has spread to other sectors of the economy.
One of the ways to regain investor confidence may be to build infrastructure that will allow Mexico to take full advantage of the enormous potential that USMCA represents for Mexico.