Narayan AmmachchiMexico attracted approximately $36.87 billion in foreign direct investment (FDI) in 2024, nearly $1 billion below analysts’ forecasts. The shortfall has tempered expectations that the nearshoring boom would drive record capital inflows into the country.
Analysts had projected FDI to reach $37.5 billion, while domestic trade groups had anticipated $40 billion. Although the figure represents a 2.3% increase from 2023 and stands as the highest preliminary FDI total on record, it remains well below the $48.35 billion recorded in 2013.
The political landscape appears to have played a significant role in investor caution. Donald Trump’s victory in the U.S. presidential election, coupled with his campaign threats to impose tariffs on USMCA trade partners, likely deterred some investors. Meanwhile, Mexico’s own election year and proposals for judicial reform by the outgoing administration may have further prompted businesses to reassess investment risks.
Beyond the headline figures, the composition of the investment raises concerns. Of the $36.87 billion, only 8.6%—around $3 billion—came from new investments, marking a historical low. The majority, 77.7%, consisted of reinvested earnings by existing companies rather than fresh capital inflows.
While the overall FDI figure remains substantial, the limited volume of new investment suggests lingering investor hesitancy, despite Mexico’s nearshoring potential.
Add comment