Mexico foreign direct investment rises 16.6%

MEXICO CITY, (AFP) - Mexico reported $17.7 billion in foreign direct investment in 2010, a 16.6 percent increase from the previous year, the economy ministry reported Tuesday.

Almost two thirds of the investments were in manufacturing, while new investments grew 69.5 percent, a statement said.

The Netherlands made almost half of the investments, followed by the United States, Spain, Canada and Britain.

Latin America’s second-biggest economy grew 5.5 percent in 2010, picking up after a sharp drop the previous year during the global financial crisis, official figures showed Monday.

Economists recently raised their growth expectations for Mexico, partly due to an improved outlook for the US economy, which receives some 80% of Mexico’s exports.