Foreign Direct Investment in 2023: Changes in sectors and challenges for Mexico

Foreign Direct Investment (FDI) is a topic of utmost importance in the global economic landscape, as it not only reflects the movement of money across different countries but also indicates the trends and preferences of investors regarding the sectors in which they wish to place their resources. According to recent data from the United Nations, a total of 1,332 billion dollars in FDI was recorded globally in 2023, representing a slight decrease of 2% compared to the previous year. It is interesting to note that, despite the overall decrease in FDI, a significant shift was observed in the sectors preferred by investors. While in previous years the services sector used to be the main recipient of foreign investment, in 2023 there was a clear shift towards the secondary sector, which includes industries such as extractive, electrical, manufacturing, and construction. This transition reflects a global trend towards seeking investment opportunities that drive economic diversification and generate a more tangible impact on the development of recipient countries. A detailed analysis of FDI projects presented in 2023 reveals that the secondary sector experienced a 7% increase compared to the previous year, while the tertiary sector, which encompasses services such as trade and finance, experienced a contraction in terms of investment intentions. This change in investor preferences suggests a greater focus on economic activities that contribute to value-added creation and the strengthening of global production chains. Regarding the geographical distribution of FDI, Mexico faces significant challenges and opportunities on the international stage. While the country remains among the main recipients of foreign investment in Latin America, its global participation has decreased in recent years. The review of FDI flows towards Mexico reveals a contraction in new investment, indicating the need to implement strategies that promote the attraction of capital to key sectors such as energy, manufacturing, and the chemical industry. Furthermore, it is essential to consider macroeconomic conditions, trade policies, and regional trends when attracting FDI in the coming years. Financial stability, openness to foreign investment, and the promotion of strategic sectors will be crucial aspects to enhance the flow of capital to Mexico and strengthen its position in the global economy. Likewise, it is important to emphasize the importance of long-term planning and policy coherence to ensure a conducive environment for investment and sustainable development. In summary, the evolution of FDI globally points towards a greater preference for productive and strategic sectors, where innovation, technology, and sustainability play a fundamental role. In this context, Mexico has the opportunity to redefine its strategy for attracting foreign investment, focusing on sectors with high growth potential and contribution to economic development. Collaboration between the public and private sectors, the promotion of competitiveness, and the diversification of the economy will be key to seizing the opportunities offered by the global market and positioning itself as an attractive destination for investment.