Mexico Retains 11th Place in Global FDI Capture

Fermaca Dreams Invests $3.7 Billion in Mexico’s Manufacturing and Digital Sectors
Published 23/05/2025

The United Nations Conference on Trade and Development (UNCTAD) published the World Investment Report 2025 on June 19, confirming that in 2024, Mexico remained in 11th place among the top recipient economies of Foreign Direct Investment (FDI), with an estimated inflow of nearly $37 billion, slightly higher than the $36 billion in 2023.

Global Comparison and Context

  • Widespread Decline: Global foreign investment fell 11% in 2024, reaching approximately USD 1.53 trillion, compared to USD 1.67 trillion in 2023.
  • Mexico's Resilience: Unlike developed economies such as China or Europe, which experienced sharper declines, Mexico managed to maintain its level, adding an additional USD 1 billion in FDI.
  • US Leadership: The US rebounded 19.7%, becoming the largest recipient of FDI (USD 279 billion), followed by Singapore, Hong Kong, China, and Luxembourg.
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Pillars of Mexican Growth

The sectors that most boosted foreign capital flows to Mexico were:

  1. Manufacturing and logistics
    1. Key driver derived from nearshoring and the dynamism in the automotive and technology industries
  2. Attractive Regions
    1. States such as Guanajuato, Nuevo León, and Jalisco have consolidated their position as investment hubs.
  3. Reinvestment of Profits
    1. According to the Bank of Mexico, approximately USD 28.7 billion came from reinvestment in the same year, 2024.

Emerging Challenges and Risks

Although Mexico maintains a positive trajectory, it faces several challenges:

  • Global uncertainty: geopolitical tensions, high debt, and exchange rate volatility could curb future FDI flows.
  • US trade policy: there are concerns about possible revisions to the USMCA and demands for greater transparency in supply chains, particularly in strategic sectors.
  • Focus on the industrial sector: although manufacturing and logistics grew, areas such as construction and energy saw declines in some subsequent quarters.

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Keys to Consolidating Success

To sustain and improve its position as one of the main destinations for foreign direct investment, Mexico must diversify its sources of FDI, attracting capital from regions such as Asia and Europe, in addition to strengthening its strategic ties with the United States. It is also essential to improve domestic conditions through greater legal certainty, effective investment monitoring, and facilities for reinvesting profits. Finally, the country must invest in innovation, maintaining incentives in high-value-added sectors such as the automotive, technology, and renewable energy sectors.

Prospects for Strengthening Mexico's Leadership in FDI

Despite the global weakening of FDI, Mexico managed to maintain its attractiveness among foreign investors, holding its 11th position worldwide, thanks to a slight increase in flows, the strengthening of its industrial sectors, and the domestic reinvestment of profits. Looking ahead to 2025–2026, its challenge will be to attract a greater diversity of capital and consolidate its regulatory and institutional environment to compete for the global top 10.

Looking to expand your operations in one of the world's top destinations for foreign investment? Mexico remains a global leader in attracting FDI thanks to its strong industrial base, strategic geographic location, and growing opportunities in manufacturing and logistics. At American Industries, we help international companies successfully establish and grow their presence in Mexico, offering turnkey solutions, legal support, and access to key incentives. Take advantage of Mexico’s stability and nearshoring momentum—contact us to start building your future in Latin America’s most dynamic investment landscape.

 

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