Despite some scepticism, such as what I discussed on Friday, Mexico’s economy continues to show signs of economic success and strength. While what we see “on the ground” – tourists, international stores, modern services – is important, the larger indicators of a healthy economy are important to offer real estate buyers confidence to invest their money and live their life in this country.
Recently, Wall Street Joural reported on Mexico’s Foreign Direct Investment (FDI) for the first half of 2013:
Mexico registered foreign direct investment of $23.85 billion in the first six months of the year, the most ever for a similar period as investment was boosted by brewer Anheuser-Busch Inbev ‘s (BUD) buyout of Mexican beer maker Grupo Modelo, the Economy Ministry said Wednesday.
The ministry said the preliminary numbers were more than double the amount initially reported for the first half of 2012.
AB Inbev completed the purchase of the half of Modelo that it didn’t already own in June, in a deal valued at $20.1 billion. The ministry said the transaction added $13.25 billion to first-half FDI.
Excluding the acquisition, January-June FDI rose 10% to $10.6 billion in the first six months, with that amount negatively affected by Spain’s Caixabank SA (CABK.MC) selling half of its 20% stake in Mexico’s Grupo Financiero Inbursa (GFINBUR.MX), reducing FDI by $1.46 billion.
Updated numbers for 2012 brought foreign direct investment for last year to $15.45 billion, 22% more than what was initially reported, the ministry added.
The suggestion seems to be that the FDI may actually be significantly higher than this initial report. In any case, it’s still very clear that large, multinational corporations are seeing enough success from Mexico’s companies and economies to continue investing on a large scale here.
-by Thomas Lloyd