Preliminary figures indicate that foreign direct investment (FDI) was up 11.1% over last year’s preliminary numbers at just under US $29.7 billion, the federal Secretariat of Economy announced this week.
The increase is much higher than the $25.6 billion expected by analysts and the $25 billion predicted by the Economy Secretariat at the start of 2017.
At the time, many analysts slashed their forecasts in the wake of the election of United States President Donald Trump on fears over the future of the North American Free Trade Agreement (NAFTA) and more protectionist trade policies.
Mexico’s partners in that agreement were the source of just over half of 2017 FDI: from the United States came 46.8% of the total and from Canada 9.1%.
Spanish investment represented 9%, Germany 8% and Japan 5.5%.
Close to half the total, 45.3%, went to the manufacturing sector, while 10.8% was allocated to transportation, shipping and storage.
The construction and commerce industries received 10.3% and 9.2%, respectively, while financial services represented 9% of the total.
Over a third of foreign investment, 38.5%, represented new money, while 32.5% corresponded to reinvested profit and 29% to intra-company accounts.
The Bank of México forecasts FDI to grow just 5% this year.
One of the early goals of the current federal administration was to attract close to $157.2 billion in foreign investment between 2013 and 2018.
So far, FDI has amounted to $171.4 billion during that period, well over the goal and more than double the total registered during the previous administration.