More Money, More Problems? The Dark Side of FDI in Mexico

Foreign direct investment (FDI) in Mexico has surged due to various factors, including geopolitical shifts and economic stability. While FDI brings economic benefits, it also raises concerns about job quality and environmental impact.

More Money, More Problems? The Dark Side of FDI in Mexico
FDI: The gift that keeps on giving...or taking? Mexico's got a love-hate relationship with foreign investment.

It is difficult to think that foreign direct investment (FDI) in Mexico can stop abruptly; the trend will continue to be upward, although perhaps with less dynamism, but it will remain at high levels, said Moritz Cruz Blanco, researcher at the UNAM Institute of Economic Research.

The record growth reported recently is due to several factors, he explained in an interview. Since the crisis caused by the COVID-19 pandemic, some economies, and mainly the United States, made adjustments to relocate their production to closer places and put it near the main consumption centers.