From Detroit to Madrid, global firms have placed big bets on Mexico’s future.

If the last few months have taught us anything, it’s that flexibility is everything. With the interconnected world of today, companies have no choice: they have got to be able to adapt quickly, internationalizing to reach new markets and remain competitive.

For example, let’s say you’re a Mexican company hoping to line up some new suppliers in China, either for the domestic market or for eventual export up north. Or on the flip side, you’re an Asian firm hoping to sell to Mexico and expand into North America.

In either of these cases, knowing the logistics and market in Mexico is fundamental. So, let’s look at the major investors in Mexico: where they are, why they’re investing, and what this means to a consultancy or import-export business interested in the Mexican market.

Treemap chart comparing foreign direct investment in Mexico by country, where the USA is the largest investor by a significant margin.
The biggest backers of Mexico's economy

Over half of all foreign direct investment (FDI) which has come into Mexico since the turn of the century has come from within North America—specifically, Mexico’s two USMCA partners, the United States and Canada.

The US is by far the largest foreign investor in its southern neighbor, with US firms having invested as much as the next nine highest source countries since 2006.

These firms are often attracted to Mexico’s convenient location, low labor costs, skilled workers, and nearshoring-driven access to North American supply chains.

European countries such as Spain and Germany have had their own lasting interests in Mexico, as seen by the countrywide dominance of banks like Santander and BBVA and the presence of auto factories such as the ones operated by Volkswagen in Puebla and Guanajuato, which exported 326K cars last year.

As members of the European Union, both Spain and Germany – alongside neighbors like France and the Benelux countries – have access to a favorable free trade agreement with Mexico, which promotes healthy long-term investments. And with healthy economic growth projected for this year, no wonder world-leading companies continue to see Mexico as a strong internationalization option.

If your company wants to expand within or from Mexico, Payoneer is the partner platform for border-free business.

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