August 23, 2012 / 5:41 PM / 5 years ago

Mexico's foreign direct investment drops in Q2-govt

MEXICO CITY, Aug 23 (Reuters) - Foreign direct investment in Mexico fell 10.2 percent year-on-year during the second quarter to $4.623 billion, preliminary figures from the Economy Ministry showed on Thursday.

The data showed investment from the United States, Mexico’s top trading partner, made up about 37 percent of flows in the second quarter and investment from Spain 31 percent.

FDI is a measure of investment in businesses and factories, as opposed to foreign portfolio investment in assets such as stocks and bonds.

Mexico’s FDI took a big hit during the 2008-2009 recession. Investment for 2011 was revised up to $20.357 billion, but that is still below 2007 or 2008 levels.

Growth in Latin America’s second biggest economy eased in the second quarter after a strong start to 2012 and the central bank forecasts 3.25 percent to 4.25 percent growth for the year.

Investment during the first half of the year was 9.2 percent lower than the same period in 2011, the ministry said. Full balance of payment figures are due for release on Friday.

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