FDI Growth but Limited Regional Diversification
According to the Mexican Secretary of Economy (SE), Foreign Direct Investment (FDI) in Mexico reached 40,905.6 million US dollars by the third quarter of 2025, marking a 14.46% increase compared to the same period in 2024.
The Ciudad de México (Mexico City) remains the leading recipient, capturing 55% of the total national FDI, equivalent to 22,812 million US dollars. Following Mexico City are Nuevo León with 4,150 million US dollars, the State of Mexico, Baja California, and Coahuila.
Limited Growth in Eight Entities
However, FDI growth is limited to only eight entities: Guerrero, Nuevo León, Coahuila, Tamaulipas, Ciudad de México, Tlaxcala, the State of Mexico, and Baja California Sur.
Analysts Identify Lack of Clear Investment Attraction Strategy
Dafne Viramontes, an analyst, explains that the pattern of FDI concentration in northern border areas and central Mexico has persisted since before the USMCA, succeeding the North American Free Trade Agreement (NAFTA). She states, “Despite signing USMCA and attracting investments, there was no expectation of a dynamic integration or economic stimulus to encourage technological development in companies.”
The absence of essential infrastructure, such as electricity, water, energy, and gas, further perpetuates this concentration. “Without these conditions in certain regions, they are immediately disqualified as potential investment zones,” Viramontes adds.
Positive Trends in FDI
Kristobal Meléndez, another analyst, highlights that Mexico City typically records monetary inflows from investments, explaining its dominance in figures despite productive activities potentially taking place elsewhere.
A significant portion of FDI directed towards the State of Mexico is intended for the domestic Mexican market, indicating confidence in the region. By the third quarter of 2025, new investments totaled 6,563 million US dollars, the highest since the last quarter of 2022.
Opportunity for Strategic Reassessment
With the upcoming review of the USMCA, there is a strategic opportunity to reconsider Mexico’s investment attraction model.
Key Questions and Answers
- Q: Why is FDI concentrated in northern states and central Mexico? A: Historical patterns of investment attraction, coupled with the lack of essential infrastructure in other regions, have led to this concentration.
- Q: What does the limited FDI growth suggest? A: There has not been a clear strategy for attracting investments beyond the traditional northern border and central regions.
- Q: How do current market conditions impact FDI? A: Markets with higher risks are losing momentum due to global uncertainty and the impending USMCA review.
- Q: What does the high FDI in Mexico City indicate? A: Although productive activities may occur elsewhere, Mexico City’s dominance in FDI figures reflects monetary inflows from investments.
- Q: What opportunities does the USMCA review present for Mexico’s investment model? A: The review offers a chance to reassess and potentially diversify Mexico’s investment attraction strategy.
