BBVA Mexico • Economy and Finance • Forbes Mexico

However, BBVA Mexico believes that the dynamics seen in companies’ financing in Mexico are not triggered by the impact of companies relocating to the country or moving ‘near shore’.

“A pattern has been recorded in the dynamics of credit flows and balances that do not necessarily indicate the use of financing for purposes related to ‘nearshoring’,” said Carlos Serrano, BBVA’s chief economist in the country, while presenting ‘Banking’ this Thursday. yes.” status report.

In contrast, Serrano indicated that the dynamism in loans to companies comes from national investment.

In fact, the chief economist of BBVA Mexico said that the effect of ‘nearshoring’ will be visible in new flows of foreign direct investment (FDI).

“If we understand nearshoring as the transfer of production from China to a market near the United States, we need to increase foreign investment,” he said.

In this sense, he elaborated that, in terms of new investments, Mexico’s FDI at the end of 2023 shows a decline.

Lee: Mexico should provide more incentives to attract investment through nearshoring: Accountant

However, although its impact is not yet visible for BBVA Mexico, Serrano pointed out that when its impact on FDI will be noticeable, it could have a favorable impact on loans to companies and the business of banks established in the country.

Credit to companies with highest growth in five years

Carlos Serrano highlighted that, at the end of 2023, loans to companies reached their highest average growth in the last five years, with an average real growth of 5.7%, the highest average annual growth since 2018, when A rate of 9.4 was recorded. % Real.

In December 2023 alone, the bank reported, current credit to companies grew at a real annual rate of 6.1% (7.8% nominal), higher than the real rate of 4.5% (11.6% nominal) seen at the end of 2022. Is.

According to preliminary data from the Ministry of Economy, during the past year, Mexico registered FDI of $36,058 million, the highest figure in its history, while it identified 378 investment announcements, which are expected to bring in investments of $110,744 million. . For three years.

With information from EFE

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