By THE PULSE NEWS MEXICIO STAFF
Direct foreign investment in Mexico fell by 11.7 percent in 2020, compared to the comparable figure for the previous year, according to the federal government’s Economy Secretariat.
Last year, Mexico received just over $29 billion in foreign investment, down from nearly $34 billion in 2019, the secretariat said in a written report on Thursday, Feb. 18.
Mexico’s manufacturing sector suffered the worst drop in investment, the report said, facing a shrinkage of 40 percent over the 12-month period.
The secretariat report said that the main reason for the drop in new investment was the ongoing covid-19 pandemic, which has shuttered many businesses and stalled investment of all types.
The United States and Canada, Mexico’s trade partners under the newly minted United States-Mexico-Canada Agreement (USMCA), were the country’s largest foreign investors in 2020, representing 39.1 percent and 14.5 percent of the total, respectively, the report said.
Overall, the Mexican economy contracted by nearly 8.5 percent in 2020.
International financial analysts have advised Mexico to provide guarantees for investors in order to jumpstart the stagnant ecnomy, but Mexican President Andrés Manuel López Obrador (AMLO) has steadfastly refused to consider that option, preferring to give financial handouts to inactive members of society.