Mexico Attracts Record US$34.97 Billion in FDI in 1H26

Mexico posted a record US$34.968 billion in FDI in the 1H26, driven overwhelmingly by reinvested profits from companies already established in the country rather than new entrants, with the United States, manufacturing and Mexico City dominating the flows. The result matters because it signals continued multinational confidence in Mexico's nearshoring platform despite USMCA review uncertainty and a softer domestic economy, even as the 2Q26's modest annual decline shows the pace of growth may be normalizing after 2025's outsized gains. 

Mexico captured a record US$34.968 billion in FDI in the first half of 2026, up 2.1% from the same period last year and the highest first-half total on record, the Ministry of Economy reported, extending a nearshoring-driven investment streak even as the broader economy shows signs of slowing.

The ministry said the milestone "reaffirms Mexico's position as an attractive investment platform," crediting solid macroeconomic and institutional fundamentals along with the government's Plan México industrial strategy. FDI has nearly doubled over the past five years, rising 89.7% between the 1H21 and the same period of 2026.

A Slower Second Quarter, Not a Reversal

The headline record masks a second-quarter dip. Mexico brought in US$10.464 billion between April and June, the second-highest second-quarter total in 16 years but a 3.5% decline from the US$10.848 billion originally reported for the same period of 2025. The ministry attributed the drop to an unusually strong second quarter last year rather than a change in trend, noting the first-quarter surge that preceded it. Mexico had already posted a record US$23.591 billion in FDI during the 1Q26 alone, up 10.4% year-on-year, according to Mexico Business News, driven largely by reinvested earnings from companies already operating in the country.

Reinvestment of profits remained by far the largest component of first-half FDI, accounting for US$30.957 billion, or 88.5% of the total. New investment contributed US$2.726 billion (7.8%), while intercompany accounts added US$1.285 billion (3.7%). That composition echoes the pattern seen in the 1Q26, when reinvested earnings jumped 33.5% year-on-year to US$22.222 billion,signaling that multinationals already committed to Mexico continue deepening their bets rather than pulling back amid trade uncertainty.

Where the Money Comes From

The United States remained by far Mexico's largest source of FDI in the first half, contributing US$16.871 billion, or 48.2% of the total. Spain followed with US$4.954 billion (14.2%), then Canada with US$1.741 billion (5.0%), Australia with US$1.698 billion (4.9%) and Germany with US$1.647 billion (4.7%). Together, these five economies accounted for 77% of all FDI Mexico received in the period, with the US and Canada alone representing 53.2%, a reflection, the Economy Ministry said, of how deeply integrated North American value chains have become under the USMCA.

The country-of-origin ranking largely mirrors 1Q26 patterns, when the US contributed US$10.21 billion, concentrated in software development, digital platforms, medical devices, automotive manufacturing and commercial banking, while Spanish capital focused on banking, energy generation and hospitality, according to Mexico Business News.

Mexico City Leads, But the State of Mexico Shows Momentum

Mexico City remained the top destination nationally, capturing US$16.862 billion, or 48.2% of total FDI. Nuevo Leon followed with US$3.712 billion (10.6%), the State of Mexico with US$2.114 billion (6.0%), Baja California with US$1.743 billion (5.0%) and Jalisco with US$1.406 billion (4.0%).

The State of Mexico's showing builds on a strong start to the year: the state attracted a record US$1.983 billion in FDI in the 1Q26 alone, reinforcing its position as the country's second-largest recipient at the time, with transportation and communication infrastructure, vehicle manufacturing and pharmaceutical production driving the inflows, Mexico Business News reported. Cumulative FDI in the state reached US$8.357 billion between September 2023 and March 2026.

Manufacturing and Financial Services Lead by Sector

Manufacturing was the top-receiving sector in the first half, capturing US$13.482 billion, or 38.6% of total flows, a 9.3% increase over the same period last year. Financial and insurance services ranked second with US$10.15 billion (29.0%), up 10.9%. Transportation, postal services and warehousing nearly quadrupled year-on-year, climbing 287% to US$2.65 billion.

Within manufacturing, growth was led by computing, communications and electronic-component equipment, which added US$1.1745 billion, followed by basic metals industries and machinery and equipment manufacturing, up US$464.3 million. The pattern is consistent with first-quarter trends, when vehicle manufacturing investment rose from US$3.351 billion to US$4.033 billion and financial and insurance services climbed nearly 28.8% to US$6.851 billion.

Globally, FDI flows rose 6% in 2025, while Mexico's grew 10.8%, keeping the country among the world's top 10 FDI recipients, ahead of India, France, Spain and Italy. The 1H26 results suggest that despite USMCA review uncertainty and a slower domestic economy, multinational companies continue treating Mexico as a durable manufacturing and nearshoring platform.