Mexico Sets 1Q25 FDI Record at US$21.3 Billion

Mexico received US$21.3 billion in foreign direct investment (FDI) during the first quarter of 2025, setting a record high, according to figures released by the Ministry of Economy (SE).

This total represents a 5.4% increase compared to the same period in 2024. While the government did not publish a full breakdown of FDI components, it highlighted a 165% surge in new investments, which reached US$1.59 billion, compared to US$599 million in the first quarter of 2024.

The SE attributed the growth to Mexico’s economic stability, favorable business environment, competitive advantages, and legal certainty offered by its trade and investment agreements.

The United States remained the largest investor, contributing 38.7% of total FDI, followed by Spain and the Netherlands. Together, the top five investing countries accounted for 71.4% of total FDI. Investments from North America—specifically the United States and Canada—represented 42.4% of the total, reflecting strong regional ties under the United States-Mexico-Canada Agreement (USMCA).

Geographically, investment was concentrated in a handful of states. Mexico City accounted for 55% of total FDI, followed by Nuevo Leon (13%), the State of Mexico (9%), Baja California (4%), and Guanajuato (3%). These five states collectively received 83.9% of the quarter’s total FDI.

By sector, manufacturing led the way, attracting 43.2% of FDI. Key industries included transportation equipment, beverages and tobacco, chemicals, computing equipment, and food processing.

Despite the positive headline figures, economists highlighted the lack of detail regarding the composition of FDI. Delia Paredes Mier of TransEconomics noted that without disaggregated data on new capital, reinvested earnings, and intercompany transfers, it is challenging to evaluate the quality of investment inflows. She cautioned that reliance on reinvestments and intra-company flows could distort perceptions of productive capital inflows.