Introduction and Overview
Despite global economic uncertainty causing many companies to pause projects in the first quarter of 2025, Jalisco managed to attract $606.8 million in Foreign Direct Investment (FDI) during this period. However, the Secretaría de Desarrollo Económico (SEDECO) anticipates closing 2025 with an FDI of $1,500 million, indicating a slowdown in foreign capital attraction. If the current trend persists, FDI could surpass $2,000 million.
Relevance of Jalisco and SEDECO
Jalisco, home to Guadalajara, is a significant economic hub in Mexico. The Secretaría de Desarrollo Económico (SEDECO) plays a crucial role in fostering economic growth and attracting foreign investment in the region. Cindy Blanco, as a key figure in SEDECO, is instrumental in these efforts.
FDI Projections and Challenges
SEDECO aims to maintain an FDI range of at least $1,200 million, as achieved in the previous year, and strive for a target of $1,500 million by the end of 2025. However, various challenges threaten this goal.
Export Performance and Strategies
In the first quarter of 2025, Jalisco’s export performance was unusual due to Donald Trump’s tariff policies. Nevertheless, the establishment of an interinstitutional permanent table has devised strategies to achieve an 11% growth in exports, similar to the performance in 2024.
- Diversification of Export Markets: Efforts are being made to support existing exporters and explore new markets. For instance, tequila producers are targeting India, a promising market, and a joint delegation (comprising businesses and government) may visit towards the end of the year.
- Latin American Market Focus: Jalisco, a major producer of meats and poultry, is identifying Latin American countries with interest in its sectors. A Panamanian delegation visiting Jalisco in late July exemplifies this strategy.
Identifying and Addressing Regulatory Challenges
SEDECO, in collaboration with various stakeholders, is identifying regulatory hurdles faced by Jalisco’s businesses in areas such as commerce exterior, the Secretaría de Economía, SAT (Mexican tax administration), and VUCEM (Mexico’s Single Window for International Trade). Once these challenges are recognized, Jalisco’s authorities will engage with federal counterparts to streamline export operations.
Conclusion
While Jalisco has made significant strides in attracting FDI, several challenges remain. By addressing regulatory issues and diversifying export markets, SEDECO aims to meet its FDI targets for 2025. Continuous efforts from all stakeholders will be essential to navigate the current economic climate and ensure Jalisco’s continued growth.
