Wednesday, June 19, 2024

Economy Minister predicts wave of investment at industry center inauguration

During the inauguration of an industry intelligence center on Thursday. Economy Minister Raquel Buenrostro predicted that there will be a wave of investment in Mexico related to nearshoring.

Mexico secured US $19 billion in foreign direct investment (FDI) in the first quarter of 2023 that is destined for the real estate sector over the next two years, Buenrostro said, noting that this is related to the relocation of manufacturing activities to Mexico.

The country is an attractive destination for nearshoring because of its geographical proximity to the U.S. and favorable trade agreements.

“In the next two years there will be a wave of significant investment,” Buenrostro said during the inauguration of the Confederation of Industrial Chambers (Concamin) Intelligence Center, or CIC, in Mexico City.

The center was created to strengthen the country’s industrial sector through systematization of information, research and analysis. Through this, the CIC will form a database containing both primary and secondary sources of information, as well as economic analyses and studies, to boost industrial development in Mexico.

According to José Abugaber, the president of Concamin, the CIC will bolster strategic decision-making and promote competitiveness.

He explained that the CIC’s inauguration is “an important event for the promotion of industrial development in Mexico, because it will be fundamental for economic growth and the social welfare of our country.”

Buenrostro echoed his sentiments, noting that the intelligence center can help strengthen regional markets through the information it will compile and provide. For example, she explained that an analysis should be carried out about the products North American countries buy from China so that Mexico can fill in those gaps.

“What is currently missing are electronics, metals, steel and autoparts. A lot of automobile manufacturers are expected to come, so these sectors are going to grow a lot,” she said, also noting that an alliance between the public and private sectors will promote these sectors and strengthen supply chains.

“The country has two options: We grow and use our business channels, or someone else will come and take them.”

The United States, Canada and Mexico have agreed to collaborate to strengthen regional integration. During the North American Leaders Summit in January, the three countries discussed measures to replace imports from Asia with those from North America.

Nearhsoring has already benefited the Mexican economy. FDI in Mexico increased 12% in 2022, its highest figure since 2015.

With reports from El Financiero and El Economista

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