Foreign Direct Investment in Mexico: 27% increase in 2023

Mexico captured 36.058 billion dollars of Foreign Direct Investment (FDI) in 2023, which is 27% more compared to 2022, informed the Ministry of Economy.

Mexico is open to FDI in most economic sectors and has always been one of the largest recipients of FDI in emerging markets.

According to the U.S. State Department, Mexico’s proximity to the United States and preferential access to the U.S. market, macroeconomic stability, large domestic market, growing consumer base, increasingly skilled workers and lower labor costs combine to attract foreign investors.

The economic crisis of the Covid-19 pandemic showed how linked North American supply chains are and highlighted new partnership and investment opportunities.

Still, recent policy and regulatory changes have created doubts about the investment climate, particularly in the energy, agriculture, and formal employment pension management sectors, according to the State Department.

Foreign Direct Investment

Most foreign investment is concentrated in the northern states near the U.S. border, where most of the maquiladoras (export-oriented assembly and manufacturing plants) are located, or in Mexico City and the nearby «El Bajío» region (e.g., Guanajuato, Querétaro, etc.).

In the past, foreign investors have overlooked Mexico’s southern states, although the administration is focused on attracting investment to the region, including through major infrastructure projects such as the Tren Maya, the Dos Bocas refinery, and the transisthmian industrial and logistics corridor.

Mexico’s government increased public spending in 2021 and widely promoted private investment in these projects.

In December 2021, the Mexican government issued a controversial decree naming these projects «national security» priorities, allowing them to proceed before environmental and other impact studies are completed.

Although the courts enjoined the executive decree, it still raised concerns about the Mexican government’s commitment to transparency.

Mexico had historically been a recipient of foreign direct investment in a variety of sectors, including manufacturing, financial services, energy, technology and automotive.


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