Foreign direct investment in Mexico increased in 2023
Foreign direct investment in Mexico saw a significant increase in 2023, figures that speak to the economic momentum in recent years.
Despite criticism from a political sector against the government of Andrés Manuel López Obrador, the economic numbers indicate substantial improvements.
Foreign direct investment in Mexico reached a new milestone: 36.058 billion dollars at the end of 2023.
These figures according to the preliminary report of the Ministry of Economy.
The figure represents a growth of 2.2% over last year; foreign direct investment in Mexico in 2023 would be the highest amount on record.
According to the federal agency’s report, most of the foreign investment, 74 per cent, was reinvestment of profits of foreign investors who remain in Mexico and, therefore, are resources that are not sent abroad.
Some 13% of FDI came from collections, loans and payments between Mexican and foreign companies of the same corporate group, and only the remaining 13% corresponded to new companies.
In this sense, foreign direct investment in Mexico had the United States as the main foreign investor in the country, with a share of 38% of total FDI registered in 2023.
Foreign direct investment in Mexico from the United States amounted to 13.8 billion dollars, with investments from companies such as General Motors, Ford and Citi.
In second place was Spain with USD 3.774 billion, while third place went to Canada with USD 3.472 billion. Japan, Germany and Argentina were next on the list with disbursements of just over USD 2 billion in 2023.
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Foreign direct investment in Mexico
The Ministry of Economy explained that 50% of this historic disbursement by foreign companies in Mexico is concentrated in the manufacturing sector, which includes manufacturers of transport equipment, the basic metal industry, metals, computer equipment, chemicals and electrical appliances, and companies producing beverages and tobacco, among others.
The remainder is distributed among mining, financial and service companies.
In the breakdown, Economía announced that Mexico City was the main recipient of these resources with 31% – more than 11,000 million dollars – while Sonora came in second place, well below its predecessor with only 8%, and Nuevo León came in third place with 7% of last year’s FDI, equivalent to 2,537 million dollars.
Mexico has been recording rising foreign direct investment figures for months.
Analysts’ reports warn that the negative effects on supply chains caused by the health crisis, the China-US trade war and conflicts such as Russia’s conflict with Ukraine have catapulted companies to relocate.
In recent years, Mexico has experienced sustained growth, even reaching pre-pandemic levels.
The policies implemented have been successful in attracting foreign direct investment in Mexico.
The behaviour of FDI to the third quarter of 2023, “is the result of the confidence of foreign investors due to the good business environment and the economic stability derived from the economic and industrial policies promoted by the Government of Mexico,” the SE said in a statement.
At the time, President Andrés Manuel López Obrador said on Thursday that the FDI received in the first three quarters of 2023 is “record”.
