Mexican Finance Minister Anticipates Record Foreign Investment in 2024

Mexico City - Mexican Finance Minister Rogelio Ramírez de la O expects foreign direct investment to exceed $36 billion in 2024, signaling strong investor confidence in the country. Speaking at the Council of the Americas' fifteenth conference in Mexico City, Ramírez de la O highlighted Mexico's attractiveness to international investors.

Mexico received $36.1 billion in FDI in 2023, with over a third coming from the United States. The finance minister's positive outlook for 2024 reflects the strength of Mexico's economy and its role in the growing trend of "friend shoring," where foreign companies are encouraged by their governments to move manufacturing to friendly nations like Mexico, diversifying away from China.

Mexico's relatively strong fiscal balance, current account, and performance of its stock market are also contributing to investor confidence. The country has been benefiting from the strength of the U.S. economy, its top trading partner.

Why this matters: Mexico's anticipated record foreign investment in 2024 underscores its increasing importance in global supply chains and manufacturing. The country's proximity to the U.S., skilled workforce, and technological infrastructure make it an attractive destination as companies look to relocate production closer to North American markets.

The Mexican government has announced investments totaling $74 billion related to this influx of foreign companies. Programs focused on integrating value chains and promoting financial inclusion are supporting this shift. Companies like Honeywell, with its 19 facilities in Mexico, are well-positioned to help consolidate these relocation strategies, leveraging their experience and capabilities in automation and balancing efficiency and solutions.

Collaboration between the government, private sector, and academic institutions is seen as essential for establishing a solid innovation ecosystem in Mexico. By working together, stakeholders aim to make industries accessible, attract more investment, and diversify businesses throughout the country.

Finance Minister Ramírez de la O's statement comes ahead of Mexico's June 2 elections, as the conference explored how the private sector can collaborate with the incoming administration to promote continued economic growth and prosperity. With investor confidence strong and FDI poised to reach new heights, Mexico appears well-positioned to solidify its role as a leading destination for foreign investment in the coming years.

Key Takeaways

• Mexico expects $36B in FDI in 2024, signaling investor confidence.
• Mexico received $36.1B in FDI in 2023, with over a third from the US.
• Mexico's strong economy, fiscal balance, and "friend shoring" trend drive investment.
• Mexico plans $74B in investments to integrate value chains and promote inclusion.
• Collaboration between government, private sector, and academia aims to build innovation.