Foreign Direct Investment

Recently, the Ministry of Economy published preliminary data on the Foreign Direct Investment (FDI) flows that entered the country during the first half of the year.

There is an exponential growth of foreign investors' claims against Mexico. This press article analyzes the cases that Mexico has faced under the investor-State Dispute Settlement contained in international trade agreements and other treaties.

Every quarter, the Ministry of Economy (SE) releases an initial data on foreign direct investment (FDI) that adjusts over time. In recent days, there has been debate about the most recent FDI data, corresponding to the first quarter of this year.

In contrast to the current account deficit of USD 4,238 million posted in 2019, this indicator showed a surplus of USD 26,571 million in 2020 as the trade balance on non-oil goods registered a much higher positive figure.

Our forecast of 2.0% of GDP for the current account deficit implies that Mexico will enter a phase of economic recovery after a real GDP contraction of 0.1% in 2019. This forecast suggests that the country is not vulnerable to external shocks and that a share of the current account deficit could be financed with net FDI.

Our forecast that the current account deficit will be 0.1% of GDP in 2019 suggests that the country is not vulnerable to external shocks and that even such deficit could be comfortably financed with NFDI and remittances.