For 2022, the Inter-American Development Bank (IDB) announced a line of credit of 200 million dollars and 3 million dollars in non-refundable resources that will be channeled through the Development Bank, with the objective of financing the relocation of companies, especially in the southeast of the country.
For its part, IDB Invest will grant between 1.8 and 2.8 billion dollars in additional private financing to companies that want to relocate to the Isthmus.
Mexico: nearshoring
According to the SHCP, the unprecedented trade situation will boost private investment in Mexico due to the phenomenon of relocation of operations to regions close to the target market (nearshoring).
The IDB estimates that the potential gain in the short and medium term for our country from nearshoring is 35 billion dollars, equivalent to 2.6% of the GDP derived from new merchandise exports.
IDB
Mexico is considered one of the countries with the greatest competitive and comparative advantages for foreign investment.
First, because of its strategic location and its network of more than 14 free trade agreements with 50 countries.
Second, because of its industrial development, such as in the transportation equipment sector, with a highly skilled workforce.
The automotive industry is converting some plants to manufacture light vehicles and electric trucks. This is to meet both domestic and international demand.
Meanwhile, incentives in the United States for electric vehicles will benefit Mexico. These incentives will also apply to vehicles assembled in the country. The SHCP expects this to boost domestic and foreign investment in the sector throughout 2023.
Reshoring
Given this scenario, Mexico can consolidate its position as a leading exporter. This will strengthen employment in the country’s manufacturing and logistics sectors.
According to the SHCP, nearshoring opportunities are already visible in 2022. There has been a 42% increase in demand for industrial space compared to last year. Additionally, 4.7 million square meters of industrial space are being constructed, double the amount from a year ago.
The phenomenon of the return of production processes to the U.S. from other parts of the world such as Asia (reshoring) will continue to generate sources of employment and production in entities commercially linked to Mexico.