Foreign direct investment into Mexico jumped 5.4% year-on-year to a record US$21.4 billion in Q1 2025, led by manufacturing, energy and major infrastructure projects amid strong nearshoring trends.
Foreign direct investment (FDI) into Mexico surged to a record US$21.4 billion in the first quarter of 2025, marking a 5.4 percent gain over the same period last year, data from the central bank showed. The inflows, driven largely by manufacturing and energy projects, underscore growing investor confidence despite lingering economic and security challenges.
Manufacturers accounted for roughly half of the total, as automakers and electronics firms ramped up production facilities under nearshoring strategies. “U.S. and Asian companies are relocating supply chains here to cut logistics costs and sidestep tariffs,” said Carlos Gómez, an economist at BBVA México. “That trend has translated into real capital on the ground.”
Energy projects made up the next biggest slice of inflows, with oilfield services, wind farms and power-transmission upgrades drawing multinational interest. A proposed joint venture between Pemex and a European oil major to modernize a Gulf Coast refinery is set to add several hundred million dollars in FDI when contracts finalize this summer.
Beyond those headline grabbers, investors also poured money into infrastructure. In late March, a consortium led by a Spanish construction group broke ground on a new port terminal in Veracruz, a project expected to handle more than 3 million containers annually once complete. Meanwhile, reports of a North American semiconductor plant in Monterrey point to continued diversification of Mexico’s industrial base.
Analysts say the resilience of capital inflows reflects more than just project pipelines. “Even with 4 percent inflation and security hotspots in parts of the country, global firms still see Mexico as a stable hub,” noted Ana Castillo of CI Banco. She cautioned, however, that policy uncertainty around labor reforms and tax rules could temper growth if not addressed swiftly.
Local authorities are already racing to sweeten the investment climate. Earlier this month, the Economy Ministry rolled out a fast-track permit system for green-energy ventures, aiming to cut approval times by up to 40 percent. Opposition lawmakers have criticized the move as favoring big players, but backers argue it will help meet Mexico’s clean-power targets and attract fresh capital.
Geographically, the Bajío region—from Guanajuato to Aguascalientes—remains the FDI hotspot, thanks to its skilled workforce and integrated supply chains. The northern border states of Nuevo León and Chihuahua follow closely, buoyed by cross-border logistics advantages. Emerging destinations like Oaxaca and Tabasco are also starting to draw renewable-energy funding.
Looking ahead, investors will watch Mexico’s upcoming GDP and retail-sales reports for signs of domestic demand, as well as the central bank’s policy signals. “Strong FDI can offset some headwinds, but sustained growth requires healthy consumption and stable prices,” Gómez added.
If the first quarter is any guide, Mexico’s strategy to court foreign capital—through nearshoring incentives, infrastructure deals and streamlined regulations—may pay off. Yet keeping that momentum will depend on balancing reforms, security and fiscal stability to reassure investors that Mexico remains open for business.
