Overview of Mexico’s Investment Landscape
The Mexican government has announced that the current portfolio of long-term investments amounts to $298 billion, comprising 1,937 private projects registered across the country’s 32 states. The aim is to foster job creation, stimulate economic growth, and facilitate the establishment of new industries. This information was provided by Marcelo Ebrard, the Secretary of Economy.
Key Objectives and Progress
Since being requested by President Claudia Sheinbaum nine months ago, this initiative has three primary goals: identifying high-impact investment projects that generate employment; understanding the requirements for successful implementation; and coordinating government departments to eliminate obstacles and expedite execution.
Ebrard Casaubón highlighted that the total investment amount registered is $298 billion, which represents about 16% of Mexico’s Gross Domestic Product (GDP). He emphasized that no projects have been canceled.
The Secretary of Economy mentioned that 446 projects face specific challenges related to water, environment, energy, and infrastructure, which are currently being addressed to ensure their progress aligns with the rest.
Distribution of Investments
These investments span all states, with Baja California, Nuevo León, and Sonora leading in the number of registered investments. The industries involved include manufacturing, energy, water and gas, among others.
Despite Mexico’s gross fixed capital formation being 24.2% of its GDP last year—the highest in three decades—economic growth still slowed to 1.5% from 3.2% in the previous year.
Mexico’s Attractiveness Amidst US Trade Policies
Marcelo Ebrard asserted that Mexico remains attractive for investments within the framework of the United States’ tariff policy. He emphasized that Mexico boasts the most favorable comparative advantages so far.
Although tariffs of 11% to 50% on imports from 57 countries were set to take effect on April 9, they were promptly suspended for 90 days across all countries except China. However, the US imposed a minimum tariff of 10% on all imports and maintained sectoral tariffs of 25% on steel, aluminum, and automobiles.
Ebrard posed the question: “Where is it cheaper to export to the US? You’ll have to pay these tariffs. So, if you make a cut today… Is Mexico in a better condition? Or is it cheaper to export from Mexico than from the rest of the world’s countries? You tell me, because it is true that we have tariffs on steel and aluminum, but it’s only 3% of Mexico’s exports. Seventy-seven percent have no tariffs.”
He further explained, “All others have tariffs. Ten, twenty, well, twenty-percent tariffs. So, it’s called comparative disadvantage. Because then the question is: where is it cheaper or more affordable to export to the US? Who has the least disadvantage?”
Grupo Modelo’s $3.6 Billion Investment
One of the investments recorded in the Secretary of Economy’s portfolio is Grupo Modelo, which announced a $3.6 billion investment in Mexico from 2025 to 2027. Raúl Escalante, Grupo Modelo’s Vice President of Corporate Affairs, made the announcement.
“Today we renew our commitment to the country with great pride. Grupo Modelo has been part of Mexico’s history for a century and will continue to be,” Escalante stated, noting that this investment aligns with the federal government’s ‘Plan Mexico’ to promote economic development with social justice and sustainability.
These investments will be allocated nationwide, particularly in states where Grupo Modelo’s plants are located—Zacatecas, Mexico City, Coahuila—and in southeastern Mexico, specifically in Tuxtepec, Oaxaca, and Hunucmá, Yucatán.
Escalante detailed that the investment will focus on modernizing cerbreweries and factories to reduce water consumption. In the past decade, Grupo Modelo has decreased water usage for beer production by 30% and relinquished 20 million cubic meters of water concessions to the National Water Commission (Conagua).
Moreover, Grupo Modelo will promote circular economy by increasing the use of returnable packaging and glass recycling programs. They will also support the 300,000 small retailers selling their products with technology, credits, and infrastructure improvements.
Key Questions and Answers
- What is the total investment amount in Mexico’s portfolio? The total investment amount registered is $298 billion, representing approximately 16% of Mexico’s GDP.
- What are the primary goals of this investment initiative? The key objectives are identifying high-impact investment projects that generate employment, understanding the requirements for successful implementation, and coordinating government departments to eliminate obstacles and expedite execution.
- Which industries are involved in these investments? The industries include manufacturing, energy, water and gas, among others.
- How does Mexico’s attractiveness hold up amidst US trade policies? Despite tariffs on steel and aluminum, Mexico maintains comparative advantages, as only 3% of its exports are subject to tariffs, while 77% have no tariffs.
- What is Grupo Modelo’s investment plan? Grupo Modelo plans to invest $3.6 billion in Mexico from 2025 to 2027, focusing on modernizing cerbreweries and factories to reduce water consumption and promoting circular economy.
