Mexico FDI Reaches Historic Highs in 2026 Amid Nearshoring

During the first half of 2026, experts believe the Mexican economy has delivered a mixed performance. On the one hand, the country faces an economic slowdown driven by international uncertainty, the review of the United States-Mexico-Canada Agreement (USMCA), and lower domestic private investment. On the other hand, foreign direct investment (FDI) continues to show remarkable resilience, keeping Mexico as one of the most attractive destinations for international capital.

Official figures released by Mexico's Ministry of Economy show that during the first quarter of 2026, Mexico attracted US$23.591 billion in FDI, the highest figure recorded for a comparable period since tracking began. This result represents a 10.4% increase compared to the same period in 2025 and confirms a positive trend that has held steady over recent years.

However, behind this record there are important nuances. A significant portion of the investment corresponds to the reinvestment of profits by companies already operating in Mexican territory — that is, foreign companies established in Mexico chose to reinvest their earnings rather than withdraw them from the country. This reflects, in my view, confidence in the Mexican market, although it does not necessarily imply a massive influx of new productive projects.

Foreign investment in 2026 has concentrated in strategic sectors that continue to benefit from the relocation of supply chains, the much-discussed phenomenon of nearshoring. Among the industries that have attracted the most resources are financial services and banking, automotive manufacturing and auto parts, medical devices, pharmaceuticals, digital technologies, energy, logistics, and transportation.

Particularly noteworthy has been the growth of the pharmaceutical industry. In late May 2026, investments exceeding MX$21 billion (US$1.2 billion) were announced by domestic and international companies to expand the production of medicines, biopharmaceuticals, and medical devices in Mexico. These investments aim to strengthen the country's health sovereignty and reduce dependence on imports.

Likewise, manufacturing related to electric mobility, artificial intelligence, and medical devices continues to attract projects and interest across various regions of the country, driven by proximity to the US market, continued consumer interest, and Mexico's competitive advantages within North America.

The geographic distribution of foreign investment across Mexico follows a pattern similar to that seen in previous years. The states that have received the largest share of capital injection are Mexico City, State of Mexico, Nuevo Leon, Baja California, and Jalisco.

Mexico City remains the primary recipient of investment due to its concentration of financial, corporate, and technology services, while Nuevo Leon continues to be one of the largest beneficiaries of nearshoring, thanks to its proximity to the United States and its solid industrial infrastructure.

States such as Queretaro, Guanajuato, Coahuila, and Chihuahua have also strengthened their positions in high-tech industries, advanced manufacturing, data centers, and electric mobility.

Regarding the origin of investment flows, in 2026 the United States continues to be, by a wide margin, Mexico's primary investing partner, but Spain, Australia, Japan, and Canada are also injecting capital into the country.

US investment has been directed mainly toward software, medical devices, hospitality, digital platforms, banking, and automotive manufacturing. Spain has increased its presence in banking, energy, and retail; Japan maintains a strong commitment to the automotive sector; and Canada is actively participating in energy infrastructure and investment funds.

One of the most frequently asked questions among analysts is: If foreign investment is reaching such high levels, why does the Mexican economy show signs of slowdown? The truth is that foreign investment represents only a portion of the country's total productive investment. While FDI maintains positive figures, gross domestic fixed investment has shown weakness in recent months, with less activity in construction, machinery, and equipment on the part of Mexican companies.

Furthermore, investors are cautious, as uncertainty stemming from the USMCA review, the evolution of US trade policies, and various shifting domestic regulatory debates remain in flux.

Despite these challenges, the outlook for foreign investment remains favorable, as Mexico holds many competitive advantages that are difficult to replicate: a strategic location next to the world's largest market, a network of trade agreements, a consolidated manufacturing base, and growing specialization in high-value-added industries.

The key to transforming investment records into sustained economic growth will be converting the confidence of already-established companies into new and larger productive investments, attracting more expansion projects, and strengthening domestic investment.

As of June 2026, the evidence shows that foreign investment has not only failed to decline, it has reached historic levels. The challenge for Mexico will be to leverage this capital flow to boost productivity, generate higher-quality jobs, and consolidate inclusive economic growth that benefits all regions of the country.