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The capital cities of Mexico and Colombia have been named as the two best “cities of the future” for investment in Latin America, according to a newly released study by the Financial Times (FT).
In the ‘Americas Cities of the Future 2021/2022’ study, Mexico City has not only retained its status as the most attractive city for investment in Latin America, but has risen five places in the overall rankings compared to the previous edition of the study two years ago.
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Mexico City’s results were based in part on the Mexican capital receiving a total of 352 inward foreign direct investment (FDI) projects during the period analysed — the highest among Latin American cities and third-highest among all cities studied. Of those projects, 68% were in business services or sales, marketing, and other support activities.
See also: How to Hire Staff Through an Employer of Record in Colombia
Claudia Sheinbaum, mayor of Mexico City, welcomed the results as an indication of Mexico’s ongoing work to develop talent and maintain its status as a hub for investment in Latin America.
“The future of Mexico City is built by the talent and solidarity of its people, a city of innovation and rights,” she told FT.
Meanwhile, Bogotá was named the second-best city for investment in Latin America, after leapfrogging Sao Paulo since the previous edition of the study. According to the FT analysis, Colombia’s capital drew 44% of inward FDI into the country, with some notable major investments being made in the city, including Argentina’s online marketplace giant MercadoLibre opening a technology and innovation center in the city in 2020.
See also: 4 Great Reasons to Start a Business in Mexico
Speaking to FT, Carolina Durán, Bogotá’s secretary for economic development, said the result represented “a recognition of the work of a city that is transforming to be more innovative, competitive, inclusive and attractive for investment.”
Chilean capital Santiago was named as the fourth-best city for investment in Latin America by the FT study.
Investment in Latin America: Study Published Amid Signs of Recovery
The results of the latest FT study come amid some encouraging signs of recovery emerging from both Colombia and Mexico, two of the most important hubs for investment in Latin America.
While new analysis in Colombia shows the country expecting to see GDP growth of 6% in 2021, Mexico has seen tourism numbers bounce back to 2019 levels on the back of the ongoing success of the vaccination drive in the United States — the origin of 80% of Mexico’s tourists.
Both facts point to recovery from the ructions of the global coronavirus pandemic, amid strong recent signs of economic improvement coming from each country, with the Colombian economy growing a reported 28% between March and April, while Mexico recently reported record levels of FDI into the country in the first four months of 2021.
Biz Latin Hub can help you doing business in Mexico and Colombia
At Biz Latin Hub, our multilingual teams of experienced company formation experts based in both Colombia and Mexico are equipped to help you enter either of these key markets for investment in Latin America. With our complete portfolio of back-office solutions, including legal, accounting, and recruitment services, we are equipped to deliver excellence and ensure the success of your market entry and ongoing business in Colombia and Mexico, or any of the other 16 jurisdictions around Latin America and the Caribbean where we have teams in place
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
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