Overview of Fixed Investment Trends in Mexico
In August 2025, the Gross Domestic Investment (fixed investment) fell by 2.7% monthly and 8.9% annually, marking the twelfth consecutive annual decline, according to Mexico’s National Institute of Statistics and Geography (Inegi).
The monthly decline in August compared to the same month in 2024 is the largest since January 2021 (-8.94%), when the effects of the Covid-19 crisis were still being felt.
Monthly and Annual Decline Details
The monthly decline of -2.7% in August is the largest since December 2024 (-2.8%), representing the seventh consecutive monthly decline in the past year, as per Inegi’s Monthly Indicator of Gross Capital Formation (IMFBCF).
The monthly decline is attributed to deterioration in three out of four subcomponents of the indicator:
- -5.2% in machinery and equipment imports
- -2.1% in non-residential construction
- -1.4% in residential construction
This decline in fixed investment during August supports the preliminary intertrimestral estimation by Inegi, which reported that Mexico’s economy contracted 0.3% during the third quarter of 2025.
Cumulative Impact and Sectoral Comparison
Cumulatively, between January and August, fixed investment has contracted by 7.3%, contrasting with the 6.8% increase observed in the same period of 2024.
Within fixed investment, public investment has been the hardest hit, with a 22.2% decline (compared to a 2% increase in 2024), while private investment has fallen by 5.4% (compared to a 7.4% increase in 2024).
Key Questions and Answers
- What is the current state of fixed investment in Mexico? Fixed investment has experienced an 8.9% annual decline in August 2025, continuing a 12-month downward trend.
- What are the monthly and annual decline details? The monthly decline of -2.7% in August is the largest since January 2021, with deterioration observed in machinery and equipment imports (-5.2%), non-residential construction (-2.1%), and residential construction (-1.4%).
- How does this decline affect the overall economy? The decline in fixed investment during August supports a preliminary estimation by Inegi that Mexico’s economy contracted 0.3% during the third quarter of 2025.
- Which sectors are most affected by the decline in fixed investment? Public investment has been hardest hit with a 22.2% decline, while private investment has fallen by 5.4%. Both sectors have experienced significant changes compared to their performance in the same period of 2024.
