Mexico’s Infrastructure Plan 2020-2024
On Monday, October 5, Mexican President Andrés Manuel López Obrador presented a package of 39 infrastructure projects that he intends to move forward in conjunction with the Mexican private sector. These projects would invest approximately 300 billion pesos in the communications, energy, tourism and water sectors. This announcement represents the reactivation of the previous plan that was presented in November 2019, but postponed by the 2020 global health pandemic. It is estimated that this investment package will represent 1% of Mexico’s Gross Domestic Product (GDP) and will generate 185,000 jobs, according to Jorge Nuño, spokesman of the Unit of Investments of the Ministry of Finance.
Nuño explained that the plan seeks to continuously grow the investment and the percent of GDP using the competitive advantages of the country and activating additional projects beyond those already underway. He added that the plan also seeks to strengthen Mexico’s participation in the trade agreement with the US and Canada, with the idea of reinforcing the strategic importance of productive supply chains, alliances and investments, along with improving border crossings and working with companies of all sizes. Currently, seven of the projects are being executed, while 32 more will start in the coming months and will continue in 2021 with an investment of 259 billion pesos, of which 158 billion pesos will be allocated to communications, 98 billion pesos for energy and two billon pesos for water management.
Mexico continues to increase its foreign investment. Currently, four out of 10 investment initiatives that industrial parks have received in Mexico come from China. Thirty-seven percent of foreign investment comes from China, 16% from the US, followed by Japan and Mexico at 12%, 9% from South Korea and 5% from Germany. Additionally, the US, Mexico and Canada “USMCA” is generating foreign investment opportunities for Mexico, along with the so-called “Trade War” between the US and China.
According to Bnamericas, the following is a complete list of investment projects announced by President Obrador.