Nearshoring in Mexico: Foreign Investment Boom Expected to Materialize by 2025, Experts Warn
Nearshoring in Mexico has generated high expectations for foreign investment, although experts warn that the real boom may materialize towards 2025. Although the country recorded a record $36.058 billion in foreign direct investment last year, it fell short of the expected projections. Investment announcements, especially related to Nearshoring, began to become more evident since 2021-2022, but it is estimated that the most significant investments will take until 2024-2025 to fully materialize.
206 investment announcements linked to Nearshoring with a value of $52.940 billion were identified last year, but this investment will be gradually distributed over the coming years. Notable examples include Tesla’s projects in Nuevo León and Mexico Pacific Limited in Sonora, which will culminate in operational plants by 2026.
It is noted that a large portion of these announcements correspond to reinvestments of profits, suggesting ongoing interest from established companies in Mexico to expand their operations. However, challenges persist such as permits from the Energy Regulatory Commission (CRE) and the need for greater international promotion.
Although President López Obrador has been criticized for his lack of representation in international forums and policies that could discourage foreign investment, it is pointed out that Mexico is taking advantage of the geopolitical environment and gaining ground in the relationship with the United States compared to China. However, the need for a comprehensive industrial policy and a more concrete effort to address the country’s structural needs is emphasized.
To Read the Full Article: https://www.elfinanciero.com.mx/economia/2024/02/15/nearshoring-en-mexico-boom-de-inversion-extranjera-se-concretara-hasta-2025-advierten-expertos/