Mexico’s Soaring Foreign Direct Investment in 2022 and 2023: A Closer Look
In a recent report by the Secretaría de Economía, Mexico showcased a robust economic performance in 2022, with foreign direct investment (FDI) reaching an impressive $35.29 billion. This marked a significant 12% increase compared to the previous year, underlining the country’s attractiveness to international investors.
Source of FDI
The preliminary data revealed that FDI in 2022 originated from 3,485 Mexican companies with foreign capital involvement, 5,739 trust contracts, and 24 foreign legal entities.
Investment Composition
Of the total FDI, 48% accounted for new investments in Mexico, 45% represented retained profits not repatriated to their home countries, and the remaining 7% comprised loans and payments between companies within the same corporate group.
Top Trading Partners
The United States and Canada remained Mexico’s primary trading partners, contributing $15 billion and $3.8 billion, respectively, reaffirming strong economic ties.
Sectoral Distribution
The manufacturing sector claimed the lion’s share, constituting 36% of the total FDI. Key areas within manufacturing included automobile and truck manufacturing, electronic components production, autoparts manufacturing, energy generation and distribution equipment manufacturing, and basic iron and steel industries.
Geographical Distribution
The top five states attracting the highest FDI in 2022 were Mexico City ($10.92 billion), Nuevo León ($4.40 billion), Jalisco ($2.90 billion), Baja California ($1.88 billion), and Chihuahua ($1.88 billion).
Additional Insights
The report also highlighted an additional $5.5 billion in FDI attributed to transnational companies with their corporate group headquarters in Mexico, generating investments through their overseas subsidiaries.
Mexico’s remarkable surge in FDI during 2022, coupled with its diversified sectors and strong ties with key trading partners, positions the country as an appealing destination for international investors. The strategic distribution of investments across states reflects a promising economic landscape, boding well for sustained growth in the years to come. As Mexico continues to attract foreign capital, the stage is set for further economic development and collaboration on the global stage.
