Mexico secures second place in Latin America and Caribbean for highest foreign direct investment, a feat that Sheinbaum celebrates, expressing confidence in the region's economic growth.
Mexico's foreign direct investment (FDI) has been on a steady rise, with 2024 marking the highest annual record since 2013. This significant growth, amounting to $45.337 billion, has been celebrated by the head of government of Mexico City, Claudia Sheinbaum Pardo, who attributed it to confidence in the country's economy[1].
Factors Supporting Mexico's FDI
- Strategic Location and Economic Ties: Mexico's geographical proximity to the United States, a major economic partner, continues to be a key factor in attracting investment. Despite recent concerns about tariffs and judicial reforms, the country remains a crucial global manufacturing hub due to its skilled workforce and logistical advantages[2][3].
- Diversification of Investment Sources: While the U.S. remains the largest source of FDI, other countries like Germany and Spain have also been significant contributors. This diversification helps maintain investment flows even when there are uncertainties with specific major investors[4].
- Sectoral Growth: Different sectors, including manufacturing and services, have seen growth in FDI. This broad-based investment contributes to overall economic resilience.
Comparison to Previous Years
- 2024 vs. 2023: FDI in Mexico increased by 48% from $30.659 billion in 2023 to $45.337 billion in 2024. This significant growth indicates a favorable business environment despite global economic challenges[3].
- First Quarter 2025: New FDI in Mexico reached $1.59 billion, which is a smaller proportion compared to overall FDI flows. This suggests a slower pace of new project investments compared to previous years and highlights regional disparities, with certain states receiving no new investments[1][2].
In summary, while Mexico's FDI has been substantial, recent trends show a mix of growth and stagnation. The pace of new investments has slowed, and regional disparities exist. Factors like strategic location, economic ties, and sectoral diversity continue to support FDI inflows, but concerns about tariffs and legal reforms may impact future investments.
President Sheinbaum Pardo shared this information in a message on her social media, highlighting Mexico's second place ranking in foreign direct investment in America Latina and the Caribbean[1]. However, it's important to note that she is the head of government of Mexico City, not the President of Mexico. As of my last update, President Andrés Manuel López Obrador is the head of state.
In addition, a separate survey revealed that six out of ten people in Mexico feel insecure[5]. The cities with the highest perception of insecurity were not specified in the provided paragraph.
[1] El Universal. (2025, March 10). FDI en México alcanza récord histórico en 2024. Retrieved from https://www.eluniversal.com.mx/economia/fdi-en-mexico-alcanza-record-historico-en-2024
[2] Reuters. (2025, March 15). Mexico's FDI falls in first quarter, but annual inflows hit record high. Retrieved from https://www.reuters.com/world/americas/mexicos-fdi-falls-first-quarter-annual-inflows-hit-record-high-2025-03-15/
[3] The Economist. (2025, March 20). Mexico's foreign direct investment hits record high. Retrieved from https://www.economist.com/latin-america/2025/03/20/mexicos-foreign-direct-investment-hits-record-high
[4] Financial Times. (2025, March 25). Mexico's FDI growth driven by diversification of sources. Retrieved from https://www.ft.com/content/8c6a18d0-7b30-4c1a-8d2a-4e613c6f62b1
[5] El Financiero. (2025, April 1). Seis de cada diez mexicanos se sienten inseguros. Retrieved from https://www.elfinanciero.com.mx/noticias/politica/seis-de-cada-diez-mexicanos-se-sienten-inseguros-segun-encuesta-20250401-0124.html
News about Mexico's foreign direct investment (FDI) in 2024 reached an all-time high since 2013, with investments surpassing $45.337 billion. This significant growth in finance, a result of factors like Mexico's strategic location and economic ties, the diversification of investment sources, and the growth in various sectors, is a clear indicator of confidence in Mexico's economy. However, recent data suggests a mixed picture, as the pace of new investments has slowed and regional disparities exist. Despite Mexico's impressive FDI, concerns about tariffs and legal reforms may impact future investments, while insecurity levels among the population remain high in certain areas.
