Mexico’s Position in UNCTAD Report
According to the United Nations Conference on Trade and Development (UNCTAD), Mexico maintained its position at 11th in the ranking of economies that attracted the most Foreign Direct Investment (FDI) in 2024.
The country attracted $37 billion in 2024, up from $36 billion in 2023. The UNCTAD’s World Investment Report 2025 highlighted that manufacturing and logistics drove Mexico’s FDI inflows.
Leading Economies
- The United States topped the list with $279 billion, followed by Singapore ($143 billion), Hong Kong ($126 billion), China ($116 billion), and Luxembourg ($106 billion).
- Canada came in sixth with $64 billion.
Macroeconomic Indicators and FDI
The UNCTAD forecasts a slowdown, with global GDP growth projections revised downwards since the beginning of the year. Moreover, capital formation and trade indicators, crucial for FDI driven by value chains, have also weakened.
High debt levels in several countries, political instability, and currency fluctuations are reducing FDI attractiveness in many regions. Investor confidence indicators, like the Purchasing Managers Index (PMI), have weakened in major capital-exporting countries.
FDI Trends
- UNCTAD data shows that while FDI inflows to the United States increased by 19.7% in 2024, flows to China decreased by 28.8% at annual rates.
- Globally, worldwide FDI fell to an interannual rate of 11% in 2024, totaling $1.531 trillion in comparable terms.
- The UNCTAD neutralized volatile financial transactions across several European economies with high channeling flow levels that would have inflated the data, leading to a 4% interannual increase.
Regional FDI Trends in Latin America and the Caribbean
FDI associated with cross-border M&A activities in Latin America and the Caribbean drastically decreased in 2024, with net sales plummeting 85% from $11.1 billion in 2023 to just $1.6 billion.
- This was primarily due to Iberdrola (Spain) selling a 55% stake in its fossil fuel-based power generation subsidiaries in Mexico to Infrastructure Partners (Mexico) for $6.2 billion.
- Brazil, the region’s only significant M&A market, saw a 37% drop, with sales falling from $8.5 billion to $5.4 billion.
FDI Distribution Among Developing Economies
Developing economies accounted for 57% of the world’s FDI inflows in 2024. The total FDI directed to developing countries remained stable at $867 billion, almost unchanged from the previous year, reflecting resilience amid global uncertainty, restrictive financial conditions, and weakened world trade.
The stagnation in FDI growth contrasts with the 22% contraction in developed economies, highlighting the ongoing significance of developing regions in the global investment landscape.
Key Questions and Answers
- Q: Where does Mexico stand in global FDI attraction? A: Mexico maintained its position at 11th in the UNCTAD’s ranking of economies that attracted the most FDI in 2024.
- Q: How much FDI did Mexico attract in 2024? A: Mexico attracted $37 billion in 2024, up from $36 billion in 2023.
- Q: Which countries led in FDI attraction in 2024? A: The United States topped the list with $279 billion, followed by Singapore ($143 billion), Hong Kong ($126 billion), China ($116 billion), and Luxembourg ($106 billion).
- Q: What factors are affecting global FDI trends? A: Macroeconomic indicators, high debt levels, political instability, and currency fluctuations are reducing FDI attractiveness in many regions.
- Q: How did FDI trends vary regionally in 2024? A: FDI associated with cross-border M&A activities in Latin America and the Caribbean drastically decreased in 2024, with net sales plummeting 85%.
- Q: What percentage of global FDI went to developing economies in 2024? A: Developing economies accounted for 57% of the world’s FDI inflows in 2024.
