Foreign investment in Mexico

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Private investment, whether domestic or foreign, is becoming increasingly important to any country’s economy. In Mexico, it represents 85% of total investment (public investment 15%), and influences job creation. Despite the fact that during 2025, as of the end of January-August, only 165,000 formal jobs were created out of a goal of 100,000 per month starting in January 2025. The goal as of August was 800,000. Although this private investment has not grown as the country needs, it has been received and reinvested by companies already established in Mexico.

It is important to note that 90% of foreign direct investment (FDI) is reinvestment of profits and only 10% is new capital. There are political, economic, and social factors that influence this investment, such as Mexico’s strategic geographic location (Mexico has 3,200 km of borders with the world’s most important nation and 11,000 km of coastline on the Atlantic and Pacific coasts). Competitive production costs and a skilled workforce are essential. A strong domestic market is also important. The macroeconomic and political environment is decisive in foreign investors’ decision to choose Mexico.

Mobility is also a factor, as 90% of Mexico’s cargo is transported by land, and the remainder by rail, sea, and air. A particular concern is the current congestion on Highway 57 (Mexico-Piedras Negras), which is effectively Mexico-Nuevo Laredo. The vast majority of the highway continues to have two lanes, carries more than 120,000 vehicles per day, and construction began in 1957. For efficient product delivery to the United States border, expanding this highway to four lanes is urgent.

Foreign direct investment in 2020 amounted to $29.079 billion dollars (MDD). In 2021, it totaled $31.621 billion dollars. In 2022, the figure was $28.416 billion dollars. In 2023, $31.096 billion dollars were recorded, and in 2024, a record $36.872 billion dollars were received. Mexico ranks 12th in receiving FDI, and second among developing economies. During 2024, US$36.872 billion was received, mostly allocated to the manufacturing industry. Another important sector is the financial sector, and continues with the mining, trade, construction, real estate, tourism, and transportation sectors.

The main investing countries in Mexico during 2024 were: the United States, Spain, the Netherlands, Canada, Australia, Germany, and China. These economic figures show us Mexico’s socioeconomic and political profile in the world. However, in recent years, we have seen changes in the global economic ranking. If we aspire to better living conditions, then we will have to improve our education, healthcare, security, mobility, and productivity in both the private and public sectors.

Source: cronica