Mexico has set a new record for foreign direct investment (FDI) in the first half of 2024
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Loading... - Anneliese Volker
- 28 Aug 2024
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Mexico has set a new record for foreign direct investment (FDI) in the first half of 2024, with inflows exceeding $31 billion—a 7% increase compared to the same period last year, according to the Federal Economy Ministry (SE). Of this, approximately $30.3 billion came from reinvested earnings, while new investments accounted for $909 million. Additionally, companies announced plans for over $45 billion in investments during the same six months.
BBVA Mexico's economic research department noted that the low level of new investments suggests companies may not be fully leveraging the relocation trend. However, the substantial reinvestment from companies already operating in Mexico indicates confidence in their initial investments. Although new investment dropped by $1.2 billion compared to 2023, reinvestment surged by nearly $7.7 billion. Notably, 97.4% of foreign investment profits from January to June 2024 remained in Mexico instead of being repatriated.
However, financial transactions such as loans and payments between Mexican companies and their international partners led to a $101 million loss, contrasting sharply with the $4.3 billion received by Mexican subsidiaries from their foreign partners in the first half of 2023.
Economy Secretary Raquel Buenrostro highlighted that the U.S. remains Mexico’s leading investment partner, contributing $13.7 billion (44%) of the total FDI. Germany and Japan followed, investing nearly $4.2 billion and $3.1 billion, respectively. The record FDI was fueled by a robust Q2, particularly in Mexico City, which received 46% of the total investment, despite a 13.6% decline in Q1 compared to the same period in 2023.
