Why is México a key destination for Foreign Direct Investment (FDI)?

México has established itself as one of the most attractive destinations for Foreign Direct Investment (FDI), thanks to its strategic location, open economy, and business friendly environment. According to the 2024 World Investment Report from the United Nations Conference on Trade and Development (UNCTAD), México ranked ninth globally in FDI inflows and third among developing economies.

Key factors driving investment in México

1. Strategic geographic location
   Situated in the heart of North America, México is the top trading partner of the United States and a vital part of the United States – México -Canada Agreement (USMCA). This position provides preferential access to key markets and significantly reduces logistics costs.
2. Open and competitive economy
   México has a network of 14 free trade agreements granting preferential access to 50 countries, covering more than 60% of the world’s GDP. The country pursues a free-market policy, promoting trade liberalization and investment.
3. Young and skilled human capital
   With a growing and youthful population, México offers a competitive and continuously trained labor force. This makes it an attractive destination for investment in high tech and advanced manufacturing sectors.
4. Macroeconomic and political stability
   México maintains prudent fiscal and monetary policies, healthy public finances, and controlled inflation. These factors create a stable and predictable environment for investors.
5. Strategic investment sectors
   FDI in México is primarily directed toward key sectors such as manufacturing, financial services, mining, commerce, construction, real estate, tourism, media, professional services, and transportation.

Attractive to global investors

In 2024, México reached a new milestone by attracting $36.87 billion USD in FDI, a 1.1% increase from the previous year and the highest amount ever recorded. The United States led as the main investing partner, contributing over $16.5 billion USD. Over the last decade, México has accumulated more than $300 billion USD in FDI, demonstrating consistent international confidence and interest in its economy.

México offers a favorable investment climate backed by a strong economy, strategic geography, and skilled talent. Its integration into global trade agreements and its macroeconomic stability position it as a top choice for investors seeking opportunities in Latin America.