Foreign investor interest in Mexico will endure

Significance

This represents the third-highest quarterly inflow ever recorded and comes despite concerns over the nationalistic rhetoric and actions of President Andres Manuel Lopez Obrador (AMLO).

Impacts

• The government will continue to embrace FDI, provided it does not affect areas deemed vital to national sovereignty (oil and electricity).
• Foreign investors, typically taking a long-term view of economic prospects, are unlikely to be deterred by the strength of the peso.
• Along with macroeconomic and political factors, crime, especially extortion, will be a significant consideration for potential investors.