Mexico suffered the worst capital flight in history

Data from the Bank of Mexico (Banxico) show that in 2021 the country saw the flight of 257 thousand 601 million pesos of capital in government debt instruments.

It is the largest capital outflow in the history of Mexico since these records exist and for secone year in a row marks a record high in absolute terms.

In 2020 the capital outflow was 257 thousand 238 million pesos that added to the 257.6 billion this 2021 give 514 thousand 839 million that left Mexico in two years.

In percentage terms, the holdings of Mexican securities by foreigners fell 11.97% in 2020 and 13.62% in 2021.

In relative terms, only the capital flight of 1995 (-76.5%), 1999 (-56.91%) and 2000 (-14.62%) were worse. So 2021 saw the biggest drop in 21 years in relative terms.

The economist Gabriela Siller, an analyst at Grupo Base, described as “unpublished in Mexico”The outflow of capital.

He also explains that “it was not because of the pandemic, as there are economies, at the last available data (third quarter), that observed capital inflows”.

On why the Mexican peso remains without a dramatic collapse, Siller explained that it is due to record remittances (+51 billion) and exports.



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