Reinvestment Drives FDI in Queretaro in 1H25

Reinvestment of earnings was the main driver of foreign direct investment (FDI) in Queretaro in 1H25, according to data from Mexico’s Ministry of Economy. The state attracted US$970.3 million in FDI from January to June, a 10.4% increase from the US$878.6 million recorded in the same period last year. Of this total, reinvested earnings contributed US$694.1 million, accounting for 71.5% of all foreign capital.

New investments surged to US$158.7 million, nearly seven times the US$22.9 million registered a year earlier, representing 16.4% of the total. Intra-company accounts added another US$117.4 million, or 12.1% of the state’s FDI inflows, rebounding from a negative US$125 million in the first half of 2024.

Despite the strong growth in new investments, reinvested earnings declined 29.2% year over year, dropping from US$980.7 million to US$694.1 million between 1H24 and the same period in 2025.

Manufacturing Sector Leads FDI
Manufacturing was the top destination for foreign capital, attracting US$716.9 million, or 73.9% of Queretaro’s FDI. The plastics and rubber industry, chemicals, transport equipment manufacturing, and auto parts production were among the sectors receiving the largest inflows. Other sectors included mass media information services (15.5%), construction (4.1%), wholesale trade (3.5%), and real estate and rental services (2%).

With US$970.3 million in FDI, Queretaro ranked fifth among Mexican states, representing 2.8% of the national total. Mexico City led with 56.4%, followed by Nuevo Leon (8.8%), State of Mexico (6.6%) and Baja California (4.6%). Queretaro was also one of just 13 states to register annual FDI growth, while 19 states saw declines.