Mexico projects to receive an estimated foreign direct investment (FDI) of 106.418 billion dollars (mdd) during the next two to three years, according to the Ministry of Economy (SE).
This forecast arises from the plans of international companies, highlighting the trend towards the relocation of supply chains, known as nearshoring, which Mexico Industry has dealt with extensively.
Up to the third quarter of 2023, Mexico has already registered an FDI of $32,926 million dollars, showing an increase of 2.4% with respect to the same period in 2022. Of this investment, 76% comes from reinvestment of profits, according to SE data.
Foreign investors
The investment plans announced, with an average of $35.472 million dollars per year, come mainly from companies in the manufacturing sector (40%) and represent expansions of companies already established in Mexico by foreign investors (67%).
The SE highlights that these announcements reflect the confidence of foreign investors in maintaining and expanding their investments, as well as the interest of new companies to establish themselves in the country.
These plans include projects in the automotive sector, such as those of Tesla, as well as initiatives related to the transportation of liquefied natural gas and the construction of industrial parks, among others.
Investment diversification
The projected figure is expected to exceed the average recorded in 2022, when Mexico reached an FDI of $35.291 billion dollars, the highest in seven years.
In addition, it is highlighted that a quarter of the expected investment comes from companies with no previous presence in Mexico, originating in countries such as China, Taiwan, Denmark and Germany, which according to the SE represents a diversification in the origin of resources.
Reducing excessive dependence on China
The disclosure of this figure coincides with the visit of U.S. Treasury Secretary Janet Yellen to Mexico, who has expressed the need to reduce her country’s excessive dependence on China in terms of manufacturing.
The United States continues to be the main source of FDI in Mexico, leading investment announcements with commitments for $42,095 million dollars in the coming years, followed by China, with a pledge of $12,610 million dollars, despite currently being in the 80th position as origin of FDI in the country.
Source: Mexico Industry