General Profile of the Industry and Country

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Source: Euromonitor

Regarding the goods exported, the top 10 list is composed by:

- Vehicles: US$88.1 billion (23.6% of total exports)

- Electrical machinery, equipment: $76.4 billion (20.4%)

- Machinery including computers: $61.7 billion (16.5%)

- Mineral fuels including oil: $18 billion (4.8%)

- Optical, technical, medical apparatus: $16.2 billion (4.3%)

- Furniture, bedding, lighting , signs, prefab buildings: $10.4 billion (2.8%)

- Plastics, plastic articles: $8.4 billion (2.2%)

- Gems, precious metals: $7.5 billion (2%)

- Vegetables: $6.7 billion (1.8%)

- Fruits, nuts: $5.5 billion (1.5%)

As the ratio of exports to GDP for 2016 was 35.8%, it is fair to say that the country has an open economy.

Direct and indirect investment flow (In and Out)

In order to provide detail on amounts, we consider the Balance of Payments report prepared by Banxico and consider these two accounts “Inversion directa” and “Inversion en cartera” as they refer to Direct investment and Indirect investment respectively and prepare the following table.

(Mill of USD)

2013

2014

2015

2016

Direct Investment

In Mexico (FDI)

$44,199

$25,629

$33,181

$33,930

From mexicans outside the country

$ (13,138)

$(8,304)

$(10,733)

$(5,515)

$31,061

$17,325

$22,448

$28,415

Indirect investments

$48,181

$46,345

$27,972

$32,091

Source: Banxico – Balance of Payments reports

From a direct investment perspective, results to be an attractive country for foreign investors who trust in the country and establish their activities here, as for example the automobile industry. On the other side, there are indirect investment that represent for instance, financial institutions and private investors buying stakes or positions of companies in the country, there are not as good as direct investment (that implies been owner of the plant) as they can vanish as soon as the sell their positions. Finally, looking into amounts, the evidence is showing that there are more net indirect investments than direct investments.

Related articles

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2) Venta de juguetes cerrará el año con crecimiento de 7% - http://www.elfinanciero.com.mx/ empresas/ venta-de-juguetes-cerrara-el-ano-con-crecimiento-de.html

3) La industria del juguete crece dentro y fuera del país: AMIJU; México, tercer exportador mundial - http://www.sinembargo.mx/06-01-2016/1591320