Foreign direct investment (FDI) in Mexico totaled US $36.87 billion in 2024, according to preliminary data published by the federal Economy Ministry (SE) on Tuesday.
The figure is the highest preliminary FDI total on record, but falls short of the $48.35 billion Mexico received in foreign investment in 2013, according to Bank of Mexico (Banxico) data. The 2013 total got a significant boost from the sale of Grupo Modelo to Belgian beverage and brewing company AB InBev.
FDI in 2024 was 2.3% higher than the preliminary total for 2023 and 1.1% higher than the updated total for that year. The 2024 preliminary total will also likely be revised upward.
The SE’s preliminary data shows that almost half of the FDI in Mexico last year came from the United States. New investment accounted for less than 10% of the FDI total, with the bulk of the money coming from the reinvestment of profits by companies that already have a presence in Mexico.
Around 90% of the foreign investment last year came into the country in the first half of the year, with less than 2% received in the final quarter.
Over half of the FDI went to Mexico’s large manufacturing sector, while Mexico City received the largest portion of the money among the country’s 32 federal entities.
US the biggest investor in Mexico followed by Japan
United States companies invested $16.51 billion in Mexico last year, a figure that accounted for 45% of total FDI inflows. The SE highlighted that Coca-Cola and AutoZone are among the U.S. companies with a presence in Mexico. The U.S. has long been the top investor in Mexico. Based on companies’ country of origin, the next biggest foreign investors in Mexico last year were:
- Japan: $4.28 billion, accounting for 12% of Mexico’s FDI total. Compared to 2023, Japan rose two places to become the second largest foreign investor in Mexico.
- Germany: $3.78 billion, accounting for 10% of the total. Germany rose two places to third.
- Canada: $3.21 billion, accounting for 9% of the total. Canada dropped one place to fourth.
- The Netherlands: $1.88 billion, accounting for 5% of the total. The Netherlands rose three places to fifth.
Investment from the United States, Japan, Germany, Canada and the Netherlands accounted for 81% of all FDI Mexico received last year.
New investment declined more than 30% last year
Bank of Mexico data shows that new foreign direct investment last year totaled $3.17 billion last year, accounting for 8.6% of total FDI in Mexico.
New FDI declined 34% compared to the preliminary total for 2023. New investment as a share of total FDI fell more than four points from just over 13% in 2023.
The new investment share of FDI in 2022 was a much higher 48%, according to preliminary data, and 50% in the final data.
Citing Banxico data, the Reforma newspaper reported that the new investment total was the lowest for any year since 1993.
The decline in new investment is seemingly incongruent with the “once-in-a-lifetime” nearshoring opportunity Mexico is said to be facing.
A significant number of foreign companies have announced investment plans for Mexico in recent years, but — as the low new FDI total shows — the vast majority of the money has not yet flowed into the country.
Gabriela Siller, director of economic analysis at Mexico’s Banco Base, said on X on Tuesday that “the nearshoring opportunity is real, but is being wasted in Mexico.”
“The share of new investment in total foreign direct investment in 2024 was the lowest on record,” she wrote above a graph supporting her statement.
Reinvestment of profits by foreign companies with an existing presence in Mexico contributed $28.71 billion to FDI in Mexico in 2024, accounting for 77.9% of the total.
The reinvestment of profits total increased almost 8% compared to the preliminary data result for 2023.
A third contribution to Mexico’s FDI total in 2024 came from loans and payments between companies of the same corporate group. That segment of FDI increased by over 8% to $4.99 billion last year, accounting for 13.5% of the total.
FDI slowed to a trickle in the fourth quarter of 2024
Banxico data shows that Mexico received almost three-quarters of its 2024 FDI total — $27.05 billion — in the first quarter of last year. More than 16% of the total flowed into the country in the second quarter of 2024, while over 8% was received in Q3.
In the final quarter of the year, Mexico received just $676.48 million in FDI, representing less than 2% of the total.
It is not unusual for Mexico to receive the majority of its annual FDI in the first half of the year, but the Q4 total was nevertheless lower than anticipated. A major factor in the Q4 slowdown was Donald Trump’s victory in the Nov. 5 presidential election in the United States and his threat shortly thereafter to impose a 25% tariff on all Mexican exports on the first day of his second term.
Uncertainty related to tariffs, the outcome of the 2026 USMCA review and Mexico’s judicial reform is not conducive to investor confidence, and thus appears likely to deter foreign investment in Mexico in the near term.
Nearly $20 billion in FDI went to manufacturing
The SE data shows that Mexico’s vast manufacturing sector received $19.88 billion in FDI last year. That figure accounts for 54% of the FDI total.
The “transport equipment” sector, which includes automakers and manufacturers of auto parts, received 50% of the FDI in the manufacturing sector.
The next biggest recipients of manufacturing sector FDI were the beverages and tobacco industry; the computing equipment industry; and the chemicals industry.
Just over $5.9 billion in FDI went to the financial services industry, accounting for 16% of the total. The next biggest recipients of FDI in Mexico in 2024 were:
- The temporary accommodation sector (including hotels): $2.74 billion, or 7% of the FDI total.
- The transport sector: $2.73 billion, or 7% of the total.
- The wholesale commercial sector: $2.3 billion, or 6% of the total.
- The mining sector: $1.52 billion, or 4% of the total.
- The retail sector: $1.3 billion, or 4% of the total.
- The professional services sector: $850 million, or 2% of the total.
Mexico City received almost 40% of FDI in 2024
Mexico City, where numerous foreign companies have offices, was once again the top recipient of FDI in Mexico in 2024.
The SE reported that the capital received $14.42 billion in FDI last year, a figure that accounts for 39% of Mexico’s total.
The next largest recipients of FDI were México state (7% of the total), Baja California (7%), Nuevo León (6%) and Chihuahua (4%).
Rounding out the top 10 were Guanajuato (4%); Baja California Sur (4%), Puebla (3%), Jalisco (3%) and Querétaro (3%).
Three of the states in the top 10 are northern border states, where many foreign companies have manufacturing plants from which they can easily export products to the United States.
Three other states in the top 10 are part of the Bajío region, a hub for automakers and aerospace companies, among other manufacturers.
The 10 states listed above together received $29.26 billion in foreign investment last year, accounting for 79% of Mexico’s total.
No states in southern Mexico are among the top 10 FDI recipients, but the federal government hopes that might change in the years ahead.
As part of the Plan México economic initiative, the government intends to create new industrial corridors spanning all 32 federal entities of Mexico. Its objective is to spread foreign investment in Mexico more equitably across the country.
The Mexican government itself has invested heavily in southern and southeastern Mexico in recent years through the construction of major infrastructure projects in the region, including the Maya Train railroad on the Yucatán Peninsula and the Olmeca Refinery on the coast of Tabasco.
With reports from El Financiero, Expansión and Reforma
