Mexico Draws US$34.3 Billion in FDI in 1H25

Mexico attracted a record US$34.27 billion in foreign direct investment (FDI) during 1H25, marking a 10.2% increase from the same period last year, President Claudia Sheinbaum announced Thursday. The figures, which the Ministry of Economy is expected to detail later, build on sustained momentum from previous years, as FDI flows grew 5.6% in 2023 and 7.1% in 2024.

Mexico’s growth in FDI stands in contrast with global trends. Worldwide flows fell 11% in 2024 to US$1.53 trillion, according to the United Nations Conference on Trade and Development (UNCTAD).

“Not even tariffs could stop the momentum of the Mexican economy,” said Sheinbaum. “They used to say that higher wages would fuel inflation, but what we see here is that when people do better, so does Mexico.”

Preliminary data shows Mexico received US$21.4 billion in FDI during 1Q25, with numbers typically revised upward in subsequent reports.

The federal government has supported investment through new tax incentives tied to the creation of Well-Being Development Poles. These include a 100% deduction on fixed assets, plus additional 25% deductions on spending for workforce training, dual education, and research and technological innovation. State and municipal tax rules are still under discussion.

On July 4, the government published a decree in the Official Gazette granting fiscal benefits for projects in circular economy initiatives, provided they are approved by the Environment Ministry. Qualifying activities include sustainable production and pollution elimination.

Five days later, the Tourism Ministry released the Guide for Financing Tourism Investment Projects, aimed at supporting companies in the sector by expanding access to funding for working capital, fixed assets, technological upgrades, and environmentally sustainable initiatives.