In the first five months of this year, public investment in Mexico's private sector amounted to $39.2 billion
According to EqualOcean, data from Mexico's Ministry of Economy (SE) indicates that from January to May this year, Mexico's public investment in private sector amounted reached $39.2 billion. The Ministry of Economy stated on Sunday that these funds are expected to flow into Mexico over the next two to three years.
The Ministry also added that in the first five months of this year, multinational companies announced 127 investment projects targeting Mexico. These projects are expected to create over 54,000 new jobs.
More than half (51%) of the total investment will come from the United States, Mexico's largest trading partner and source of foreign direct investment. Germany is the second-largest investor (accounting for 14% of the total), followed by Argentina in third place (11%).
A significant portion of the foreign direct investment, about 56%, will be directed towards the manufacturing sector. Meanwhile, the media, commerce, and transportation sectors will each receive 13% of the funds. The new investments are expected to be distributed as follows: 16% to Querétaro, 12% to the State of Mexico, 9% to Nuevo León, 5% to Coahuila, with the remaining 58% spread across other states in Mexico.
Last month, the Ministry of Economy reported that foreign investment in Mexico hit a record high in the first quarter of 2024, with an annual increase of 9%, totaling over $20.3 billion. However, in the first three months of this year, only 3% (approximately $600 million) of the foreign direct investment in Mexico was new foreign investment, while 97% was reinvested profits from foreign companies and investors already operating in the country.
Nevertheless, based on recent announcements from foreign companies, the proportion of "new investment" in Mexico's foreign direct investment is expected to increase significantly in the coming years. Last year, dozens of companies, including automakers Tesla and Kia, steel manufacturer Ternium, and energy companies Mexico Pacific Limited and Woodside, announced large-scale investment plans.
Just last week, Mexico Pacific Limited announced that it would invest an additional $15 billion in a liquefied natural gas project in northern Mexico over the next two to three years, doubling its investment in Mexico to $30 billion.