Foreign direct investment in Mexico climbs to record US $40.9B, already surpassing all of 2024 – Mexico News Daily

Report on Foreign Direct Investment in Mexico and its Alignment with Sustainable Development Goals (Q1-Q3 2025)

Executive Summary

This report details the performance of Foreign Direct Investment (FDI) in Mexico for the first nine months of 2025. The federal government reported a record inflow of US $40.906 billion, representing a 14.5% increase over the same period in 2024. This substantial growth in investment is a key driver for achieving national economic targets and aligns directly with several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 17 (Partnerships for the Goals).

Key FDI Performance Indicators (January-September 2025)

• Total FDI Inflow: US $40.906 billion.
• Year-on-Year Growth: 14.5% increase from US $35.737 billion in the same period of 2024.
• Historical Performance: The highest FDI amount recorded for the first three quarters of a year.
• Long-Term Trend: A nearly 70% increase in FDI compared to the same period in 2018, indicating sustained and accelerating investor confidence.

Analysis of Investment Components and Contribution to SDG 8: Decent Work and Economic Growth

The composition of the FDI highlights a significant increase in new projects, which is fundamental for creating new jobs and fostering sustainable economic growth as outlined in SDG 8. The primary components of the FDI inflow were:

1. New Investments: This component saw a dramatic increase of over 200%, rising from US $2 billion in 2024 to US $6.5 billion in 2025. This influx is critical for expanding Mexico’s productive capacity and generating new employment opportunities.
2. Reinvestment of Profits: The majority of FDI came from the reinvestment of profits by established foreign companies, signaling strong long-term confidence in the Mexican economy.
3. Inter-company Accounts: A portion of the FDI consisted of loans and payments between companies belonging to the same corporate group.

Sectoral Distribution and Impact on SDG 9: Industry, Innovation, and Infrastructure

The distribution of FDI across key sectors demonstrates a direct contribution to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation, in line with SDG 9.

• Manufacturing Sector (37%): As the largest recipient of FDI, the manufacturing sector’s growth is pivotal for enhancing Mexico’s industrial base and its integration into global value chains.
• Financial Services (25%): Investment in this sector strengthens the financial infrastructure necessary to support broad-based economic development.
• Construction (5%): These investments directly support the development of physical infrastructure, a core target of SDG 9.

Strategic Context and Alignment with SDG 17: Partnerships for the Goals

The record FDI levels are supported by a favorable strategic environment and reflect strengthening global partnerships for sustainable development, a central theme of SDG 17.

• Government Initiatives: The growth aligns with the federal government’s “Plan México,” which aims to leverage FDI to position Mexico as a top-10 global economy.
• Global Economic Trends: Mexico continues to benefit from the nearshoring trend, as international companies relocate production to be closer to North American markets, leveraging the USMCA trade pact. This trend enhances global trade partnerships.
• Investor Confidence: According to Economy Minister Marcelo Ebrard, the accelerated FDI growth signifies robust international confidence in Mexico’s economic direction and governance, which is essential for attracting the long-term partnerships needed to achieve the SDGs.

Conclusion

The FDI inflow in the first nine months of 2025 has already surpassed the total amount received for the entire year of 2024 (US $37 billion). This strong performance provides a solid foundation for Mexico to advance its economic development agenda while making significant contributions to the Sustainable Development Goals. The continued attraction of foreign investment, particularly in new industrial and infrastructure projects, will be crucial for fostering inclusive growth and sustainable prosperity.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  The article’s central theme is the significant increase in Foreign Direct Investment (FDI) in Mexico, which is a key driver of economic growth. The text explicitly mentions a “14.5% increase” in FDI and the government’s satisfaction with this growth, stating, “The willingness to invest in our country is reaffirmed. We’re going to end 2025 very well.” This directly relates to the goal of sustaining economic growth.

• SDG 9: Industry, Innovation and Infrastructure

  The article provides a breakdown of where the FDI is being allocated, noting that “37% of the money went to Mexico’s manufacturing sector” and “5% was invested in construction projects.” This investment is crucial for promoting industrialization and developing infrastructure, which are core components of SDG 9.

• SDG 17: Partnerships for the Goals

  This goal emphasizes the need for global partnerships to achieve sustainable development. FDI is a primary example of a financial partnership between countries. The article, which focuses on Mexico receiving “just over US $40.9 billion” from foreign investors, directly illustrates the mobilization of international financial resources to support a developing country’s economy, aligning with the targets under SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.

   The article’s focus on the record-breaking FDI growth (“the highest on record”) and the government’s “Plan México” initiative, which aims to make “Mexico the 10th largest economy in the world by 2030,” directly reflects the ambition to sustain high levels of economic growth.

2. Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product in line with national circumstances, and double its share in least developed countries.

   The article specifies that a significant portion of the FDI, 37%, was directed towards the manufacturing sector. This substantial investment directly supports the promotion of industrialization within Mexico.

3. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.

   The entire article is a report on the successful mobilization of financial resources from foreign sources. The reported figure of “$40.906 billion in FDI between January and September” is a direct measurement of achieving this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.1.1: Annual growth rate of real GDP per capita.

  While the article does not mention GDP directly, it provides a key component of it. The reported “14.5% increase” in FDI is a strong proxy indicator for economic activity and contributes directly to the calculation of GDP growth. The government’s statement that “all expectations were that the growth in foreign investment in Mexico wasn’t going to be so large” implies that this growth is a primary measure of economic success.

• Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.

  The article implies this indicator by stating that “37% of the money [FDI] went to Mexico’s manufacturing sector.” This percentage of investment is a direct input that contributes to the manufacturing sector’s value added and its proportion of the overall economy.

• Indicator 17.3.1: Foreign direct investment (FDI), official development assistance and South-South cooperation as a proportion of total domestic budget.

  The article explicitly and repeatedly provides the core data for this indicator. The headline figure of “US $40.9 billion” in FDI is a direct measurement used for tracking progress on mobilizing international financial resources.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: mexiconewsdaily.com