Mexico positions itself as the top choice for investors due to nearshoring

May 27, 2024 by PIMSA0

Mexico has become the top choice for foreign investors. Its geographical and commercial proximity to the United States, as well as the fiscal and monetary prudence that continues to characterize its economy, are its main attraction factors, noted Luis Berlfein, Head of Global Markets for Latin America at BNP Paribas.

The strengthening of the peso against the dollar over the past two years has not been coincidental, he commented. This notion of greater business opportunities due to the trade agreement with the United States and the confidence provided by the country’s macroeconomic stability are factors that have undoubtedly attracted capital to the market, he noted.

The Bank of Mexico was among the first to react to the signs of global inflation shocks and is noted for having maintained restrictions until inflation was reduced, he stated. Even now, with inflation far from the peak reached in September 2022, it still maintains one of the highest rates. This is well recognized by the markets, he emphasized.

From his perspective, even with the increase in the fiscal deficit this year to levels not seen in three decades, Mexico stands out for its prudence in managing public finances. Unlike other countries that have not begun consolidation, Mexico did not incur significant debt during the pandemic, he noted.

The Head of Global Markets for Latin America at BNP Paribas dismissed the idea that the democratic process the country will undergo in June will moderate the flow of investments attracted by nearshoring.

According to the expert, the infrastructure sector is receiving the most investments, and BNP Paribas’ experience in Mexico allows them to observe that when a company invests in infrastructure, it is considering long-term business potential that goes far beyond a single government administration.

Investors Define the Map

During a visit to Mexico to participate in the celebration of the 4th anniversary of BNP Paribas’ corporate banking operations in the country, he detailed that the interest Mexico has sparked abroad comes from multinationals of all kinds, including manufacturers, developers, infrastructure funds, and private equity firms.

He emphasized that all the companies trying to enter Mexico to take advantage of nearshoring are seeking compliance with ESG principles (Environmental, Social, and Governance). This means they consider projects that are non-polluting, beneficial to society, and ensure that companies have proper structures and processes in their administrative management.


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Mexicali Baja California

Mexicali Baja California

Copyright by PIMSA 2019. All rights reserved.

Copyright by PIMSA 2019. All rights reserved.