Mexico is a populous Latin American nation. It possesses an open trade regime thanks to the North American Free Trade Agreement (NAFTA). Foreign direct investment in Mexico is reported to have recorded a 21% increase in the year 2007. It amounted to US$23.2 billion or €15.7 billion. This was the second highest in the country's history. It was only next to the US$29.5 billion investment made in 2001.
About half of the FDI investment to Mexico came from USA. Holland and Spain followed suit with an investment percentage of 15% and 10% respectively. FDI inflow within September 2007 for Mexico amounted to $18.4 billion. It was 30.3% higher in comparison to figures for the same time period in 2006. Half of the capital investment in the form of FDI was meant for the manufacturing sector. It implied an increased availability of remunerative jobs for the Mexican populace.
Analysts have considered 2008 to be an irregular year with the US economy suffering from multiple effects of recession. It may be noted that, Mexico is highly dependent and interlinked with the US economy through various trade relations.
Mexico's expected foreign direct investment stands to the tune of $20 billion for 2008. This is a scaling down from the 2007 estimate of $23 billion.
There have been five important developments today, but price action has been mostly limited. Confirmation that the Reserve Bank of New Zealand is pausing after hiking rates for the fourth consecutive time has sent the New Zealand dollar sharply lower. The disappointing UK retail sales report has spurred an extension of the profit-taking seen in sterling in recent days. Sterling made a marginal new low for the month as it tested the $1.70 level. Despite other developments, the other major currencies are little changed.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific
James W. Harpel Professor of Capital Formation and Growth at the John F. Kennedy School of Government in Harvard University. Director of Program in International Finance and Macroeconomics at the National Bureau of Economic Research.