Record-Breaking FDI Inflows in Mexico
Mexico has attracted a record-breaking $34,265 million in Foreign Direct Investment (FDI) during the second quarter of 2025, marking a 10.2% increase from the previous year, according to Mexico City’s President Claudia Sheinbaum.
These FDI inflows have accelerated their growth, with a 5.6% rise in 2023 and a 7.1% increase in 2024, as per the first quarters of the past two years.
Sheinbaum’s Remarks on Economic Resilience
Sheinbaum highlighted, “Even tariffs couldn’t hold back the Mexican economy. Remember when they said that raising wages would lead to inflation? Here, we see that when people prosper, so does Mexico.”
Detailed data on this indicator will be released later by the Secretariat of Economy.
Mexico previously reached a record $21.4 billion in FDI arrivals during the first quarter of 2025. These preliminary figures are subject to adjustments in subsequent months, which is why they’re compared with previously announced preliminary figures.
Government 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 for fixed assets
- 25% additional for training and dual education expenses
- 25% for innovation and technological development
State and municipal taxes are still under definition.
July 4, 2025 Decree for Circular Economy Investments
On July 4, 2025, a decree was published in the Federal Official Gazette offering tax benefits to contributors 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 and Natural Resources, such as sustainable goods production and pollution elimination.
Tourism Financing Guide Announcement
Five days after the circular economy decree, Mexico’s 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 businesses by facilitating access to funding for essential business needs, such as working capital, acquisition of fixed assets, technological improvements, and environmental sustainability initiatives.
Global FDI Trends in 2024
According to the United Nations Conference on Trade and Development (UNCTAD), global FDI flows dropped to an interannual rate of 11% in 2024, totaling $1,531,000 million in comparable terms.
Key Questions and Answers
- Q: What is the significance of Mexico’s record-breaking FDI inflows? A: This demonstrates Mexico’s resilient economy, proving that higher wages do not necessarily lead to inflation.
- Q: What tax incentives does the Mexican government offer for foreign investments? A: The federal government provides a 100% deduction for fixed assets, along with additional 25% for training and dual education expenses, as well as 25% for innovation and technological development.
- Q: What are the conditions for tax benefits under the circular economy decree? A: Investments must be made in sustainable and socially responsible economic activities approved by the Secretariat of Environment and Natural Resources.
- Q: What is the Global FDI trend in 2024 according to UNCTAD? A: Global FDI flows decreased by 11% in 2024, totaling $1,531,000 million in comparable terms.
