Mexico Attracts US$3.15 Billion in New FDI in 2Q25

Mexico recorded US$3.15 billion in new foreign direct investment (FDI) during 2Q25, the highest level in 12 quarters and a 246% increase compared to the same period last year, reported the Ministry of Economy.

The surge in new capital demonstrates investor confidence in Mexico despite global political and economic headwinds. New FDI flows are defined as initial capital investments by foreign companies establishing operations in the country, contributions to Mexican firms’ equity, or share transfers from Mexican to foreign investors, said the Ministry of Economy. 

Total FDI inflows in 1H25 reached US$34.27 billion, representing a 10.2% increase from the US$31.1 billion reported in the same period of 2024. This marks a fifth consecutive year of record foreign investment in Mexico.

Reinvestment of profits accounted for 84.4% of the total, although this category declined 4.5% year-over-year. New investments represented 9.2%, while intercompany accounts grew sharply to 6.4% of inflows after rebounding from negative figures in 2024.

The United States remained Mexico’s top investment partner, contributing 42.9% of total inflows. Spain ranked second with US$5.94 billion, a turnaround from a US$219 million outflow in 2024. Canada placed third, though its investment fell by US$657 million compared with last year. Germany also recorded a US$456 million decline, while Japan’s investment levels remained stable.

Combined, the Top 5 investor countries accounted for 73.3% of FDI into Mexico. The North American region (United States and Canada) represented 48% of total inflows, underscoring the importance of trilateral integration under the USMCA trade pact.

The capital was also highly concentrated geographically. Five Mexican states attracted 79.2% of inflows, with Mexico City receiving more than half at 56.4%. Nuevo Leon and the State of Mexico registered strong increases of 31.6% each, while Baja California saw a 12.8% decline. By sector, manufacturing absorbed the largest share at 36%, followed by financial services with 26.7%. Construction and mining represented 7.6% and 7.2%, respectively.

“Foreign investment flows reaffirm the interest of global investors in Mexico as a key destination,” the Ministry of Economy said in its statement.

Ramping Up Efforts 

Earlier this week, MBN reported that Mexico is attracting a growing number of foreign investment projects and plans to boost its efforts to draw in more capital once tariff discussions with the United States are concluded, according to Minister of Economy Marcelo Ebrard. 

The minister said that international companies are frequently visiting the country to evaluate investment opportunities, citing a recent meeting with Goldman Sachs CEO David Solomon, who came to Mexico to discuss upcoming initiatives.

“Investments are coming in every day,” Ebrard stated after signing Puebla’s Economic Development for Well-Being Hub agreement. “Once the tariff negotiations are over, we will intensify our efforts.”

Ebrard highlighted Mexico’s competitive advantages, including lower production costs and preferential market access. “Eighty-four percent of our exports currently face no tariffs, except for China,” he said. “We will see the outcome of the negotiations and then ramp up our efforts accordingly.”