Mexico Ranks 21st in Kearney’s Foreign Direct Investment Confidence Index
- Posted by México
- On Monday April 15th, 2024
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Mexico has secured the 21st position in Kearney’s Global Foreign Direct Investment (FDI) Confidence Index, which ranks economies attracting foreign capital. This marks its re-entry into the top 25, after being excluded for the past four years. Topping the list are the United States, followed by Canada, China (including Hong Kong), the United Kingdom, and Germany.
Re-Entry and Promising Prospects
Mexico’s return to the top 25 may be attributed to the benefits it’s reaping from offshoring, as Kearney notes. The consultancy firm also highlights the potential of Brazil, Mexico, and Argentina in reshoring dynamics, using Mexico as a prime example.
Shifting Dynamics Amidst COVID-19
The onset of the COVID-19 pandemic has spurred shifts in manufacturing supply chains, with notable increases in US imports of Mexican-manufactured goods, rising from $320 billion to $402 billion.
Nearshoring and Reshoring Trends
Kearney’s 2023 Reshoring Index reveals that 96% of CEOs are evaluating, executing, or have already executed operations relocation. Among the factors driving this trend, tensions between the US and China rank second, following disruptions in the supply chain.
Global Rankings and Noteworthy Trends
The UAE, Saudi Arabia, and China have shown significant advancements in investment confidence, alongside the re-entry of Mexico and Brazil. Notably, Argentina’s inclusion reflects a surge in FDI, reaching $15.1 billion in 2022, a 125% increase from 2021.
Insights into Emerging Markets
For the first time in the index’s history, Kearney introduced a separate ranking for emerging markets. This offers business leaders insights into the most attractive emerging markets for investment over the next three years. China, the UAE, Saudi Arabia, India, Brazil, Mexico, Poland, and Argentina lead the pack, with America boasting the highest number of listed markets, followed by Asia-Pacific, the Middle East, and Africa.
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