Tag Archives: information technology

Mexican economy showing flickers of life

Mexico has surpassed 104,000 deaths due to COVID-19, the fourth highest total among world nations, and total accumulated cases exceed one million.  The rate of infection remains uneven throughout the country, however five major states including Mexico City are registering an upward trend in the number of cases and are perilously close to returning to the red or highest level on the national epidemiological traffic light system.  A return to red would signify closure of all but essential businesses and other strict restrictions on movement and economic activity.  At the same time, 16 of Mexico’s 32 states are currently at the yellow level, implying relatively minor restrictions, and one state, Campeche, has returned to green or restriction-free status. Continue reading Mexican economy showing flickers of life

A little investment, a lot of COVID-19

Reported investment into Mexico has dropped way off during the COVID-19 era, but there was a glimmer over the past month.  Following the update on the pandemic situation in Mexico we provide some examples of economic activity:

COVID-19

The spread of COVID-19 remains strong in Mexico however it has stabilized in some parts of the country.  Mexico currently is ranked 11th in the world among countries with the highest number of accumulated confirmed cases.  Local health officials’ methodology for allowing increased economic activity includes factors such as the rate of increase in the number of cases and the level of occupation of hospital beds.  On this basis, in the past week 18 states have advanced from red, the highest level of alert and restriction, to orange, the second highest.  Fourteen states remain at red, or maximum restriction of economic activities.  States at the orange level, including the capital city, may reopen retail businesses and restaurants at a limited level of capacity in stages during the first two weeks of July.  Offices for most businesses remain closed. Continue reading A little investment, a lot of COVID-19

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Logistics: U.S.-based industrial real estate developer Prologis plans investment of US$180 million in Mexico operations this year, the company reported. Projects include construction of new industrial parks as well as acquisition of parks currently under construction. (El Financiero, March 26, 2015)
  • Retail: Mexican upscale department store chain Palacio de Hierro will establish a new store in the Gulf coast city of Veracruz at a cost of approximately US$40 million. The store will be part of a new oceanfront commercial development to include retail space, offices, restaurants and cinemas. (El Financiero, March 23, 2015)
  • Entertainment: Mexican cinema operator Cinemex projects it will add up to 170 screens to Mexico operations in 2015 at a cost of approximately US$100 million. Cinemex also plans to enter the U.S. market in 2016, the company reported. (Finamex Casa de Bolsa Comentario de Apertura, March 23, 2015)
  • Information technology: Mexican telecommunications service provider Alestra will invest approximately US$108 million in Mexico operations this year, the company reported. Plans include a major expansion of the company’s data center in the central state of Querétaro, one of five such centers Alestra operates in the country. (El Financiero, March 20, 2015)
  • Automotive: Canadian auto parts manufacturer Magna International plans investment of approximately US$135 million to install a production plant in the central state of Querétaro. The facility is planned to produce fenders, panels and other exterior vehicle parts for global OEMs. (El Financiero, March 19, 2015)
  • Food processing: DuPont Mexico, subsidiary of U.S. chemical giant DuPont, plans investment of US$10 million in Mexico operations in 2015, the company reported. Projects include expansion of the company’s pectin extraction plant in the western state of Colima. (Reforma, March 19, 2015) Continue reading Recent and upcoming investment in Mexico