Background on Claudia Sheinbaum and her Relevance
Claudia Sheinbaum Pardo, the current head of Mexico City’s government as its Chief of Government, previously served as the Secretary of Environmental Affairs and Sustainable Development from 2018 to 2024. Her role in shaping environmental policies and promoting sustainable development has made her a key figure in Mexico’s economic progress. As the President of Mexico City, she announced the record-breaking FDI inflow, highlighting the resilience of Mexico’s economy despite previous skepticism.
Record-breaking FDI Inflow
Mexico attracted a record-breaking $34,265 million in Foreign Direct Investment (FDI) by the second quarter of 2025, reported Claudia Sheinbaum, the President of Mexico City. This represents a year-over-year increase of 10.2%.
These FDI flows have accelerated their growth over the past two years’ first quarters, with a 5.6% rise in 2023 and a 7.1% increase in 2024.
Sheinbaum emphasized, “Even tariffs couldn’t hold back the Mexican economy. Remember when they said that increasing wages would lead to inflation? Here, we see that when people prosper, so does Mexico.”
Detailed breakdowns of this indicator will be released later by the Secretary of Economy.
Mexico achieved a record $21,400 million FDI inflow during the first quarter of 2025. These preliminary figures are subject to adjustments as more months pass, which is why they’re compared to previously announced preliminary figures.
Tax Incentives for Foreign Investment
As part of recent public policies, the federal government offers tax incentives through the Decree for the Creation of Development Poles for Well-being: 100% deduction on fixed assets, plus an additional 25% for training and dual education expenses, and another 25% for innovation and technological development. State and municipal taxes are still under definition.
On July 4, 2025, a decree was published in the Federal Register of the Federation offering tax benefits to taxpayers investing in circular economy projects within the Circular Economy Development Poles for Well-being. Investments must be made in sustainable and socially responsible economic activities approved by the Secretariat of Environment, Natural Resources and Fishing, such as sustainable goods production and pollution elimination.
Five days later, the Secretariat of Tourism (SECTUR) announced the publication of the Guide for Financing Tourism Investment Projects, a resource designed to boost the growth and development of tourism sector businesses by facilitating access to financing for essential business needs like working capital, acquisition of fixed assets, technological improvements, and environmental sustainability initiatives.
Global FDI flows dropped to an interannual rate of 11% in 2024, reaching $1,531,000 million, according to comparable terms data from the United Nations Conference on Trade and Development (UNCTAD).
Key Questions and Answers
- What is the significance of Mexico’s record-breaking FDI inflow? This milestone demonstrates the resilience and growth of Mexico’s economy, despite previous concerns about tariffs and wage increases.
- Who is Claudia Sheinbaum, and why is she relevant? Claudia Sheinbaum Pardo is the current President of Mexico City and a former Secretary of Environmental Affairs and Sustainable Development. Her role in shaping environmental policies and promoting sustainable development has made her a key figure in Mexico’s economic progress.
- What tax incentives does the Mexican government offer for foreign investment? The federal government offers tax incentives through the Decree for the Creation of Development Poles for Well-being, including 100% deduction on fixed assets and additional benefits for training, innovation, and technological development.
- What is the significance of Mexico’s FDI performance compared to global trends? Despite the global decline in FDI flows by 11% in 2024, Mexico’s performance indicates its economic strength and potential for attracting foreign investment.
