Follow us on our social networks:One step missing!Go to your email and confirm your subscription (remember to also check spam)There was a fault.Please try again later.For the second consecutive year, Mexico held tenth place among the 10 nations that attracted the most foreign direct investment (FDI), according to the World Investment 2022 report, published by the UN on Thursday.Last year, Mexico received 32,000 million dollars (mdd) of foreign capital, four trillion more than in 2021 (28,000 million dollars), with which it remained among the 10 countries that received the most foreign investment, detailed the report of the Conference of the United Nations for Trade and Development (UNCTAD).New investments in industries such as the automotive and mining and extractive industries boosted the arrival of capital in Mexico.There was also an increase in investment Greenfield, an indicator of future investment plans, grew by 43% since 2020, for example, the Chinese company Huawei announced that it will open a data center in the cloud with an investment of 4,500 million dollars (mdd) , highlighted the report.The United States and China lead the list of countries receiving foreign capital with 376,000 million dollars and 181,000 million dollars, respectively;Hong Kong (China) ranked third with $141 billion, Singapore ($99 billion) and Canada ($60 billion) round out the top 5.The first five recipients of FDI improved their figures compared to 2020, but worsened in India, seventh place in 2021 (45,000 million dollars, 26% less than in 2021) and Germany - 11th place - with 31,000 million dollars, a drop of 52%.Globally, UNCTAD highlighted, FDI had a rise of 63%, to reach 1.58 billion dollars (trillion in English) last year.However, the outlook for this year does not look promising as a result of Russia's conflict with Ukraine, the UN warned.After the strong rise last year, due in part to the general collapse of 2020, "the outlook for 2022 is more discouraging," the report acknowledged.In the first quarter of this year, announcements of new plant investments by companies fell by 21% globally, mergers and acquisitions fell by 13% and international financial project agreements fell by 4%, trends that according to UNCTAD They are symptoms of a year down."The investment climate has changed dramatically with the war in Ukraine and the triple crisis it has caused: rising food prices, fuel prices, and greater financial rigidity," the UN agency analyzed.The persistence of the pandemic, the possibility of interest rate hikes in the large economies, the pessimism in the financial markets and the fear of a potential recession add uncertainty to the investment climate, in view of which "developing countries should receive support from the international community," recommended UNCTAD.In contrast to the outlook this year, foreign investment in 2021 benefited from a boom in mergers and acquisitions, an easing of financial policies and the application of stimulus packages in sectors such as infrastructure.Investments grew most significantly (134%) in developed countries, while in developing economies they rose 30% to reach an all-time high of $837 billion, driven especially by capital inflows to Asia and some recovery in Africa and Latin America.In Europe, foreign direct investment grew by 170% annually to $219 billion, a figure below that prior to the pandemic, while in North America the indicator rose 145% to $427 billion, far exceeding the 2019 level.Asia was for the third consecutive year the main destination of investments, which reached a historical maximum of 619,000 million dollars (19% more than in 2020), while in Latin America the increase was 55% (134,000 million dollars) and in Africa 112%. ($83 billion).In Russia, which in 2021 was the ninth economy on the planet with the highest foreign investment, UNCTAD foresees "an exodus of multinationals" due to sanctions, with a widespread loss of assets and massive outflow of investment.The organization calculated that two thirds of the multinationals with investments in Russia are from countries that have imposed sanctions against Moscow for the invasion of Ukraine.In 2021, the foreign company with the most assets in Russian territory was the Finnish energy company Fortum, followed by the French automaker Renault and the oil companies BP (British) and Total (from France), according to the UNCTAD report.On a global level, the effects of the war in Ukraine will be "above all indirect and difficult to anticipate", since investments to and from Russia were already at a relatively low level since international sanctions on the country began in 2014, due to the Russia's unilateral annexation of Crimea and the conflict in Donbas.The most direct effects "are expected mainly in a limited number of economies in Eastern Europe and Central Asia, due to their links with the Russian investment profile," the UN agency analyzed.Follow us on our social networks:Visit other group sites:© 2022 RIGHTS RESERVED EXPANSION, SA DE CV