Adrián Otero, general director of Scotiabank, explained that there was a structural change in foreign direct investment, which has benefited Mexico in the last 10 years
Mexico went from capturing 1 to 3 percent of all foreign direct investment in the world in the last decade, revealed Adrián Otero, general director of Scotiabank.
“If we take a total of all foreign direct investment in the world, Mexico represented one percent in 2012 and China represented 13 percent and the United States 14 percent,” commented the Canadian-born bank manager.
By 2023, the United States remained very important in the contribution of private capital around the world with 26 percent of foreign direct investment destined for the world, he added.
“China went from 13 percent to 3 percent in 2023 and Mexico went from one to 3 percent, this is not a minor change and it is happening and we are competing for capital,” he commented during the 20th anniversary of the Real Estate Development Expo. organized by the Real Estate Development Association (ADI).
“Structural change is changing foreign direct investment in the world and not only here (in Mexico),” he added.
There was a change in the map of foreign direct investment from China, which in 2021 received private capital for 334 billion dollars and in 2023 it reached 43 billion dollars, he explained.
“This is a structural change that is happening in the world (at a time when) we see a complex geopolitical environment” due to the war between Russia and Ukraine and the war between Israel and Gaza, as well as trade disputes.
If we are able to take advantage, it could represent a significant increase in exports, commented the manager.
But capturing the opportunity involves working on the construction of infrastructure between the government and the private initiative and Mexico is an opportunity to invest, since it is driven by the US economy, which is highly dynamic and is exceeding expectations due to consumption and work part, he added.
“We are going to have very important investment and growth throughout North America,” he said.
“Mexico will represent a very important additional part of the entire transformation project that we have been doing over the last 4 years and in which we have invested 700 million dollars,” stated the general director of the institution.
The trade war between China and the United States caused the Asian country’s exports to drop from 21 percent to 19 percent and since 2018, Mexico began to be favored by nearshoring, later Covid-19 arrived and accelerated the effect, he explained. he.
Mexico has maintained the economic growth averages that the world generally brings; In 2024 we see a difficult environment due to high interest rates and high inflation levels, which is why central banks have had to increase rates and “it is not a minor issue,” said Adrián Otero.
Four years ago the interest rates in the United States were at zero percent and today they are at 5 percent, while 2024 will be a critical year due to the elections in the United States and Mexico, he said.
Source: forbes
