Mexico's Foreign Direct Investment (FDI) Hits $36.87 Billion in 2024

Foreign direct investment in Mexico 2024 reached a record-breaking preliminary total of $36.87 billion, according to data from the federal Economy Ministry (SE). While this marks the highest preliminary FDI figure on record, it still falls short of the $48.35 billion peak in 2013, which was significantly influenced by the sale of Grupo Modelo to AB InBev.

The United States maintained its dominant position as Mexico’s top FDI source, followed by Japan, Germany, and Canada. However, the majority of the foreign direct investment in Mexico was not new investment but reinvestment of profits by companies already established in the country.

Key Foreign Direct Investment (FDI) Trends in Mexico 2024

• United States: The largest investor with $16.51 billion (45%), led by major firms like Coca-Cola and AutoZone.
• Japan: Second-largest investor with $4.28 billion (12%), climbing two positions from 2023.
• Germany: Third-largest at $3.78 billion (10%), also rising in ranking.
• Canada: Fourth with $3.21 billion (9%), dropping one place.
• Netherlands: Newcomer to the top five at $1.88 billion (5%).

Decline in New Foreign Direct Investment in Mexico

Despite the high foreign direct investment figures in Mexico, new investment dropped significantly, falling by 34% to just $3.17 billion, the lowest figure since 1993. This drop contradicts expectations surrounding Mexico’s nearshoring opportunity, as companies have announced investment plans, but the actual capital inflow remains slow.

Sector Breakdown: Foreign Investment in Mexico's Manufacturing Sector Leads the Way

Manufacturing: The biggest recipient, securing 54% of total FDI ($19.88 billion), primarily in automotive, electronics, and industrial production.

• Financial Services: Accounted for 16% ($5.9 billion).
• Hospitality & Tourism: Received $2.74 billion (7%).
• Transport Sector: $2.73 billion (7%).
• Wholesale Trade: $2.3 billion (6%).
• Mining: $1.52 billion (4%).
• Mining: $1.52 billion (4%).

Geographical Distribution of Foreign Direct Investment in Mexico 2024

• Mexico City (CDMX): The top recipient with $14.42 billion (39%), driven by finance, telecommunications, and corporate investments.
• State of Mexico & Baja California: Each received 7%, benefiting from manufacturing and logistics.
• Nuevo León: Accounted for 6%, attracting industrial and nearshoring investments.
• Chihuahua: Secured 4%, largely due to aerospace and automotive production.

Challenges and Future Outlook for Mexico's FDI

A major slowdown occurred in Q4 2024, with Mexico receiving only $676.48 million in foreign direct investment, less than 2% of the total. This drop is largely attributed to Donald Trump’s victory in the U.S. presidential election, which introduced trade uncertainty and tariff threats.

While foreign direct investment in Mexico 2024 remains strong, the decline in new investment raises concerns. Policymakers must address regulatory challenges, improve infrastructure, and capitalize on nearshoring trends to maintain a steady inflow of FDI and enhance Mexico’s global competitiveness.