FDI Reaches USD32.9 Billion in the First Nine Months of 2023

By Goodrich, Riquelme y Asociados

Mexico's foreign direct investment (FDI) totaled USD32.9 billion in the first nine months of 2023, a 2.4% increase compared to the January-September period of 2022, according to the Ministry of Economy (SE).

The increase in FDI was driven by reinvestment of profits, which accounted for 73% of total inflows. Inter-company accounts and new investments represented 19% and 8% of total inflows, respectively.

The United States remained the largest source of FDI to Mexico in the first nine months of 2023, followed by Spain and Germany.

The manufacturing sector was the largest recipient of FDI, attracting USD17.5 billion, or 53% of total inflows. Financial services, trade, telecommunications, and mining were the other four sectors that attracted significant FDI inflows.

The outlook for FDI in Mexico remains positive for the remainder of 2023. The country's strong economic fundamentals, its commitment to attracting foreign investment, and the ongoing nearshoring trend are expected to continue to drive FDI inflows.

Key takeaways:

-Mexico's FDI totaled USD32.9 billion in the first nine months of 2023.

-Reinvestment of profits was the largest source of FDI inflows.

-The United States remained the largest source of FDI to Mexico.

-The manufacturing sector was the largest recipient of FDI.

-The outlook for FDI in Mexico remains positive.