Mexico's FDI surge: Steel industry leads as investments hit $32.9 Billion in Jan-Nov 2023

10 November, 2023 by

In the initial nine months of the year, Mexico witnessed a substantial influx of foreign direct investment (FDI), reaching $32.9 billion, marking a 2.4 percent increase from the corresponding period last year, as indicated by preliminary data from the Ministry of Economy. Notably, the steel industry remained a robust attractor of foreign capital.

Discrepancies surfaced between FDI statistical data reported by the Ministry of Economy and the Mexican central bank (Banxico). The Bank of Mexico's data reveals a 4.8 percent decrease in FDI accumulated until September, contrasting with the $34.6 billion recorded in the January-September 2022 period.

Economía's analysis highlighted that a substantial 82.4 percent of FDI originated from six nations: the United States (41.1 percent), Spain (11.3 percent), Germany (8.5 percent), Argentina (7.5 percent), and Japan (7.3 percent). Within the industrial landscape, manufacturing continued to be a primary investment magnet, amassing $17.5 billion, constituting 53 percent of the total.

Breaking down the manufacturing sector, the segment dedicated to transportation equipment production, particularly the automotive industry, secured around $7.7 billion. Additionally, the steel industry-related segment attracted approximately $2.5 billion in the first nine months of 2023, based on calculations by SteelOrbis using Ministry of Economy data.

Economía, while not specifying quantities, highlighted investments from notable entities such as Ternium, Toyota, Paccar, Lear, Whirlpool, General Motors, Ford, Mercedes-Benz, Audi, Volkswagen, among others. Geographically, 57.5 percent of the FDI was concentrated in five states: Ciudad de México (32.1 percent), Nuevo León (8.6 percent), Sonora (7.7 percent), Chihuahua (4.6 percent), and the Estado de México (4.5 percent).

Read More: British Steel's £1.25 billion investment: Two electric arc furnaces for a greener future

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