Despite uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) and the July presidential elections, Mexico now tops FDI confidence in Latin America, according to the latest FDI Confidence Index from A.T. Kearney.
While it’s score actually declined – from 1.51 points to 1.47 points – it outperformed the previous top country, Brazil, which saw its score decline even more – from 1.52 points to 1.37 points.
Mexico ranks 17th for the second consecutive year.
“The government has taken steps to improve the investment environment, such as lifting price controls on fuel and privatizing its hydrocarbon sector, which have already resulted in major deals,” A.T. Kearney says.
Brazil ended in 25th place, down nine spots from last year.
“Brazil continues its streak of ranking in the top 25 throughout the entire history of the Index,” A.T. Kearney says. “Despite lingering economic and political uncertainty, the country’s sheer size makes it an enduring destination for FDI."
The report comes just as both Mexico and Brazil face crucial elections that could impact foreign investors positovely or negatively.
In Mexico, the front-runner is Andres Manuel Lopez Obrador, a leftist firenbrand who is threatening to roll back the country's recent energy reforms and has made threats against the new international airport being built in Mexico City (see Mexico: AMLO Threatens Airport, Energy Reforms).
Meanwhile, in Brazil the business favorite -- former Sao Paulo Governor Geraldo Alckmin -- is trailing behind several other candidates, according to the