Mexico City – In the first quarter of 2024, Mexico recorded a historic high in Foreign Direct Investment (FDI), reaching $20.3 billion. This amount is 9% higher than the $18.6 billion reported during the same period in 2023, according to the Ministry of Economy.
The Ministry noted that the increased FDI is a result of foreign investors’ confidence in Mexico’s stable economy and favorable business environment. This confidence has led to substantial reinvestment of profits, as well as the capacity for companies to issue and receive loans and settle international debts.
The United States was the largest contributor, accounting for 52% of the total FDI with $10.6 billion. Germany followed with $1.74 billion (9%), then Canada with $1.7 billion (8%), and Japan with $1.4 billion (7%).
Significantly, 97% of the FDI came from the reinvestment of profits, meaning earnings made by companies were kept in Mexico instead of being sent abroad. New investments made up only 0.6%, and inter-company accounts accounted for 0.1%.
The Ministry of Economy emphasized that the reinvestment of profits has reached a historical maximum for the second consecutive year, reinforcing the trust foreign investors have in Mexico’s economic stability and business potential.
Additionally, 77% of the FDI was concentrated in five states. Mexico City received the largest share with $12.4 billion, followed by Nuevo León with $1.35 billion, Baja California with $1.8 billion, Veracruz with $685 million, and Chihuahua with $683 million.
42% of the registered FDI is concentrated in the manufacturing sector. Key industries include Transportation Equipment, Food, Beverages and Tobacco, Chemicals, Metals, Plastics and Rubber, Electric Power Generation Equipment, Computer Equipment, and Paper Manufacturing.