On May 22, 2025, the Ministry of Economy (“SE”) issued a public statement (the “Statement”) reporting a record level of Foreign Direct Investment (“FDI”) in Mexico during the First Quarter of 2025, reaching an all-time high of USD 21.4 billion, with a 165% increase in new investments compared to the previous quarter.
Despite the protectionist trade policies implemented by former President Trump and a generally adverse global economic environment, Mexico has unexpectedly emerged as an attractive destination for foreign investors seeking fertile ground for capital deployment. This favorable positioning is due to several structural advantages over competing markets: (i) the United States-Mexico-Canada Agreement (“USMCA”), (ii) its privileged geographic location, (iii) policy initiatives from the Mexican government aimed at promoting nearshoring strategies, such as the “Plan México”1 and (iv) a skilled and cost-efficient labor force.
While global FDI declined by 8%2 in 2024, Mexico succeeded in creating an environment conducive to attracting productive foreign capital, providing not only greater inflows but also a favorable setting for business expansion and the consolidation of foreign enterprises within the country.
From a geographical standpoint, the United States remained Mexico’s largest investment partner, accounting for 38.7% of total FDI inflows (USD 8.3 billion), followed by Spain (15%), the Netherlands (8.3%), Australia (5.7%), and Germany (3.7%). Altogether, these five countries contributed 71.4% of total FDI in Mexico. North America (United States and Canada) represented 42.4% of the total, underscoring the strategic relevance of the USMCA as a regional economic integration platform.
While the manufacturing sector continues to lead FDI inflows in Mexico, capturing 43% of total investment, the financial services sector ranks second with a 24% share. In this latter segment, our Firm has played a key role by advising Dutch-based TMF Group in the acquisition of several accounting and tax firms in Mexico, thereby reinforcing its market leadership and expanding its national presence.
It is also worth noting that FDI is increasingly entering sectors that have historically been less accessible to foreign capital, such as the food and beverage, chemical, and agricultural processing industries. This trend reflects a long-term vision by international investors and a deeper integration into Mexico’s productive ecosystem. These investments go beyond traditional manufacturing nearshoring and indicate a clear interest in participating in strategic value chains with strong local roots.
The data released by the Ministry confirms Mexico’s macroeconomic soundness and reveals growing international confidence in the country as a regional FDI hub. In this context, opportunities for expansion projects, mergers and acquisitions, and investment in key sectors are broadening, marking a strategic moment for companies and investors to strengthen or establish their presence in Mexico.
[1] See: https://pcga.mx/ideas/mexico-actividades-nearshoring/ ; https://pcga.mx/ideas/nuevos-estimulos-fiscales-para-impulsar-inversiones-en-sectores-clave-de-mexico-en-el-contexto-del-nearshoring/ ; https://pcga.mx/ideas/plan-mexico-nearshoring/
[2] https://unctad.org/es/publication/monitor-de-las-tendencias-de-inversion-global-no-48
Prepared by:
Juan Carlos Izaza
Counsel
Matisse Flores
Legal Intern
