Mexico's Foreign Direct Investment Reaches Record High

Record-Breaking Foreign Direct Investment

According to statistics released on August 21 by Mexico's Ministry of Economy Foreign Investment Directorate General (DGIE), foreign direct investment inflows (balance of payments basis, flow) for the first half of 2025 (January-June) totaled $34.265 billion, a 10.2% increase year-on-year. This represents a record high for the first half period.

Investment Composition and Surge in New Investment

Investment composition breakdown:

  • Reinvested earnings: 84.4% ($28.93 billion)
  • New investment: 9.2% ($3.149 billion, 3.5 times year-on-year increase)
  • Intercompany accounts: 6.4% ($2.196 billion)

The dramatic 3.5-fold increase in new investment particularly drove overall growth.

Investment Trends by Country/Region

Major Investing Country Rankings:

  1. United States: $14.703 billion (42.9% share) - largest investing country
  2. Spain: 17.3% (approximately $5.9 billion) - significant recovery from previous year's redemption excess
  3. Canada: 5.1% (approximately $1.7 billion)
  4. Japan: $1.444 billion (4.2% share, 53.1% decrease year-on-year)

Spain continues to perform well, with Cox Energy acquiring Iberdrola's Mexican operations for $4.2 billion in July and announcing $10.7 billion in investments for 2025-2030.

Industrial and Regional Investment Patterns

Investment by Industry:

  • Manufacturing: Accounts for 36.0% of investment but down 25.9% year-on-year, showing poor performance
  • Transportation equipment manufacturing: Down 36.1% year-on-year due to impact of US additional tariffs
  • Finance and insurance: 26.7% of investment amount, strong performance with 90.8% year-on-year increase

Regional Investment Distribution:

  • Mexico City: 56.4% of total (36.1% increase year-on-year)
  • Nuevo León: Manufacturing cluster region with 31.6% increase year-on-year
  • Baja California: Down 12.9% year-on-year
  • Guanajuato: Japanese company entry region with 35.6% decrease year-on-year

Government and Political Assessment

DGIE commented that "amid global political and economic conditions, foreign investors' continued interest in Mexico has been demonstrated once again." President Claudia Sheinbaum stated at an August 21 press conference that "(US additional) tariffs couldn't stop the Mexican economy either," emphasizing Mexico's attractiveness as an investment destination.

※ This summary was automatically generated by AI. Please refer to the original article for accuracy.

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