FDI surges to record $31b in Mexico in H1-24
Mexico witnessed a remarkable surge in foreign direct investment (FDI) during the first half of 2024, reaching a new high of $31 billion. This represents a 7 per cent increase compared to the same period last year, according to Mexico’s Ministry of Economy.
A substantial portion of this investment, approximately $30 billion, originated from companies already operating in Mexico. Meanwhile, new investments contributed over $900 million to the country’s economy.
“For the second consecutive year, we highlight the unprecedented amount of reinvestment of profits by companies in the country, due to economic stability, the good business environment and the competitive advantages offered, an ideal situation to expand and improve their production processes, becoming companies that attract new investments,” the ministry stated in a release.
The United States emerged as Mexico’s leading investor during the first six months of 2024, accounting for 44 per cent of FDI, or $13.7 billion. Other significant contributors included Germany ($4.2 billion), Japan ($3 billion), Canada ($2.4 billion), and Belgium ($1.5 billion).
In April, the Volvo Group announced plans to establish a heavy-duty truck manufacturing plant in Mexico. This facility, intended to complement the company’s existing U.S. production, will support Volvo Trucks and Mack Trucks’ growth strategies across North America.
On Friday, Volvo confirmed that the new factory would be located in Monterrey, Mexico. The company plans to invest $700 million in this project, as outlined in a press release. Monterrey, situated approximately 140 miles south of Laredo, Texas, offers strategic logistical advantages for serving the southwestern and western regions of the United States, as well as Mexico and Latin America.
Several other automakers have also invested in Mexico during the first half of 2024, including Toyota, Honda, Mazda, Hyundai, Volkswagen, BMW, GM, and Stellantis.
The manufacturing sector accounted for a significant portion, 54 per cent, of FDI in Mexico during this period. This includes companies operating in industries such as food and beverages, tobacco, chemicals, computer equipment, metals, plastics, and rubber. Notable manufacturers making investments include Anheuser-Busch InBev, Coca-Cola, Heineken, Nestle, LG, and Bosch.
Mexico City received the largest share of foreign direct investment, capturing approximately 46 per cent. The Mexican states of Nuevo León (7 per cent), Baja California (6 per cent), and the State of Mexico (5 per cent) also attracted substantial investments.
Attribution: FreightWaves & Mexico’s Ministry of Economy
