Foreign investment in the country drops 55%

Foreign direct investment (FDI) fell 55.8 percent in the second quarter for Chihuahua. From $800.3 million raised in January-March 2022, it rose to 353.3 during April-June, according to the latest report from the Economy Ministry.

New investments amounted to $37.3 million, compared to $136 million in the previous quarter. The value of reinvestment increased from $403.4 million to $14.3 million, and inter-company accounts saw a slight increase from $260.9 million to $301.7 million, SE details.

The volume of foreign direct investment received in the entity in the first half of 2022 amounted to $1,153.6 million, which is 11.8% lower than the same period last year, when $1307.8 million was recorded.

However, one thousand $ 153.6 million obtained in the first six months of 2022 is the highest number in the past five years, as one thousand $ 290.4 million was recorded in 2014, then it remained less than one thousand million.

According to Alejandro Sandoval Murillo, President of the Mexican Institute of Financial Managers (IMEF), the sharp decline in foreign direct investment, pumped out by companies already established or just arriving in the state, is not necessarily a serious or worrisome reality.

He considered that taking into account that it comes from record numbers, the decline may be just an adjustment, but it is stable, however – he added – it is necessary to assess whether the decline is due to the loss of investment opportunities already.

In the context of the advantages of the treaty between Mexico, the United States and Canada and the “rolling” with the arrival and expansion of companies, it leads to an assessment of the type of investments that are being brought in and priority is given to those with high added value, he said.

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“If it falls, it’s not entirely bad, because it does not go down, but we have to assess why we missed opportunities if that is the case,” he said. “It’s not dangerous, but it really does lead to an assessment of the type of investments that are being brought in.”

The Department of Economy report details that by country of origin, Canada, the United States, Japan, the Netherlands, the United Kingdom, and Spain are the main countries that garnered investment in Chihuahua in the first semester.

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