During the first quarter of 2024, foreign direct investment (FDI) in Mexico amounted to US$20.3 billion, 9% higher than the US$18.6 billion reported in the same period of 2023, reaching a new historical maximum for a similar period since records began, informed the Ministry of Economy (SE).
In a press release, the agency highlighted that in the first three months of the year a reconfiguration of FDI behavior has been observed, as a result of foreign investors’ confidence in the good business environment and the country’s economic stability.
“This allows foreign capital to be maintained through the reinvestment of its profits and companies to have the capacity to make and receive loans, as well as to pay off their debts abroad,” said the SE.
The United States was positioned as the main investment partner in Mexico, accounting for 52% of total flows ( US$10.6 billion); nevertheless, the agency assured that there is greater diversification in the origin of investments and their sectors of participation.
Below the United States was Germany, with US$1.74 billion, equivalent to 9% of the total; followed by Canada, with US$1.70 billion (8 percent), and Japan, with US$1.43 billion, representing 7 percent of total foreign direct investment.
It is worth mentioning that 97 percent of the foreign investment received by Mexico in the first quarter of 2024 came from reinvestment of profits, that is, profits of the companies’ shareholders that remain in the country instead of being sent abroad; meanwhile, only 0.6 percent were new investments and 0.1 percent were intercompany accounts.
On the other hand, it was detailed that 77 percent of FDI was concentrated in five states, among which Mexico City stands out as the main recipient of capital, with an amount of US$12.4 billion, followed by Nuevo León, with US$1.35 billion; Baja California, US$1.83 billion; Veracruz, US$685 million, and Chihuahua, with US$683 million.
Source: Mexico Now