Mexico loses its attractiveness to foreign investors, slipping from Top 20 to No. 24
By Georgina Saldierna and Antonio Zúñiga
La Jornada
For the first time in 10 years, Mexico has lost its position among the 20 countries attracting the most foreign investment, the UN Conference on Commerce and Development (UNCTAD) reveals in its 2010 report.
Mexico's ranking as a foreign investment magnet fell to No. 24. The ranking has fluctuated over the the past decade, putting it mostly between No. 15 and No. 20 but reaching as high as No. 12.
The country lost its Top 20 ranking this year, said UN consultant Gregorio Channels, because it lost more investment during the global economic downturn than other countries, which moved higher in the ranking and displaced Mexico.
More than three-quarters of Mexico's foreign investment has been spent on mergers and acquisitions. That category experienced the biggest drop in 2009, Channels said.
The country also was hurt, he said, by the virtual disappearance of investment in Mexico's mostly foreign-owned maquiladora manufacturing factories. Their main market in the United States dried up when the U.S. recession eroded consumers' buying power.
