Mexico’s first-half FDI hits record $34.968 billion, driven by 9.3% manufacturing growth

Mexico’s Secretaría de Economía reported on August 24 that Foreign Direct Investment (FDI) reached $34.968 billion in the first half of 2026, a 2.1% increase over the $34.265 billion recorded in the same period of 2025 and the highest first-half total since records began.

The agency attributed the gain largely to manufacturing, which drew $13.482 billion, up 9.3% year-over-year and accounting for 38.6% of total FDI inflows. FDI in Mexico has climbed in every comparable first half since 2020, and the total has nearly doubled over the past five years, up 89.7% from the first half of 2021. Officials linked the result to the strength of Mexico’s macroeconomic and institutional fundamentals and to the guidelines of the Plan México economic strategy.

By investment type, reinvested earnings from companies already established in Mexico totaled $30.957 billion, or 88.5% of the half-year FDI total. New investment reached $2.726 billion, or 7.8% of the total, while intercompany accounts contributed $1.285 billion, or 3.7%. The pattern indicates that most of the period’s FDI growth in Mexico came from companies expanding or sustaining operations they already run in the country, rather than from newly arriving investors.

Manufacturing remained the top destination for FDI in Mexico, capturing $13.482 billion and 38.6% of the half-year total. Financial and insurance services ranked second at $10.150 billion, or 29.0% of the total, up 10.9% year-over-year, while transport, mail, and warehousing nearly quadrupled to $2.650 billion, a 287% increase from the same period a year earlier.

Within manufacturing, growth concentrated in computing, communications, and electronic components equipment, which added $1,174.5 million in new investment, and in basic metals industries together with machinery and equipment manufacturing, which added a combined $464.3 million. Both categories are closely tied to the electronics and automotive supply chains that have anchored recent nearshoring activity in northern and central Mexico.

The United States remained Mexico’s largest source of FDI, contributing $16.871 billion, or 48.2% of the total. Spain followed at $4.954 billion (14.2%), ahead of Canada ($1.741 billion, 5.0%), Australia ($1.698 billion, 4.9%), and Germany ($1.647 billion, 4.7%). Together, these five economies accounted for 77.0% of total FDI, and the United States and Canada alone contributed 53.2%, underscoring how closely North American supply chains remain integrated.

By state, Mexico City was the top destination, capturing $16.862 billion, or 48.2% of the national FDI. Nuevo León followed at $3.712 billion (10.6%), then the State of Mexico ($2.114 billion, 6.0%), Baja California ($1.743 billion, 5.0%), and Jalisco ($1.406 billion, 4.0%). Together, the five leading states accounted for 73.9% of all FDI captured during the period, leaving comparatively little spread across the country’s other manufacturing regions.

FDI growth moderated in the second quarter, when FDI totaled $10.464 billion, down 3.5% from $10.848 billion in the same period of 2025. The Secretaría de Economía attributed the dip to an unusually strong comparison base in 2025 rather than a shift in trend, noting the quarter was still the second-highest for any second quarter in 16 years. Globally, FDI flows grew 6% in 2025 while Mexico’s grew 10.8%, keeping the country among the world’s ten largest recipients, ahead of India, France, Spain, and Italy.

For manufacturers weighing where to locate or expand, a market this dominated by reinvestment signals confidence among companies already operating in Mexico, and it adds competition for the same industrial space, labor pools, and infrastructure that new entrants need. American Industries Group works with companies establishing and scaling manufacturing operations in Mexico, from initial site selection through ongoing shelter administration.

Sources: Secretaría de Economía