With recent diplomatic difficulties starting to fade, Spanish foreign direct investment (FDI) in Mexico rose 69% in 2024 compared to 2023 and continues to rise, according to data from the Spanish Chamber of Commerce in Mexico (Camescom). 

Mexico was the third greatest recipient of Spanish foreign investment in 2024, with Spanish firms investing €3.3 billion (US$3.86 billion) in the Mexican market. This was the largest investment since 2018, when Spain invested €5.5 billion ($6.44 billion) in Mexico. 

Just over 72%, or €2.2 billion ($2.58 billion), of the 2024 Spanish investment in Mexico went to the financial services sector. 

Spain has 2,300 companies operating in Mexico, supporting over 500,000 indirect jobs countrywide. Meanwhile, Mexico is the sixth-largest investor in Spain, contributing 50% of Latin American investment in the country.  

A Camescom survey of Spanish companies operating in Mexico revealed that 75% of firms see the investment climate as good, 39% have seen improvements compared to last year, and 54% perceive it as stable. However, 32% of companies highlighted concerns over the exchange rate. 

“Despite all the noise, wars, tariffs and internal Mexican political issues, I’m seeing the same appetite for Mexico, and the good thing is that the numbers support this perception,” said Jordi Peixó Marco, the Spanish bank Santander’s executive director of international business and agribusiness in the small and medium-sized enterprise and commercial banking segments.

Just in the first quarter of 2025, Spain has invested over €3.2 billion ($3.758 billion) in Mexico, accounting for 15% of Spain’s total FDI, according to Camescom’s president, Antonio Basagoiti. 

“Despite the global challenges, the figures reflect a real commitment and shared development,” said Basagoiti. 

Diplomatic relations are improving

In 2022, former Mexican President Andrés Manuel López Obrador called for a pause on diplomatic relations between Mexico and Spain after Spanish King Felipe VI refused to issue a public apology for the Conquest, a decision that President Claudia Sheinbaum upheld.  

On Monday, the Spanish ambassador to Mexico, Juan Duarte Cuadrado, met with Gerardo Fernández Noroña, president of the Mexican Senate, to request the resumption of the Mexico-Spain Binational Commission, a meeting to advance joint agendas in areas like trade, investment and culture. 

“Although we still have a loose end to resolve, from my position as ambassador, I have been working for almost three years to smooth out these minor difficulties, and I am convinced that we can move forward in this final stretch,” Duarte said during the meeting.

During an interview after the meeting, Fernández Noroña was asked if the pause in relations had effectively been overcome. 

“We are interested in overcoming whatever differences there may be and strengthening our ties,” he said.

With reports from Milenio, El Financiero and Reuters