Mexico private investment announcements reach US$65bn in Jan-Sept

Mexico reported 209 private investment announcements between January and September, involving a combined US$64.7 billion.

The amount adds to the US$111bn reported during 2023 and implies 99,709 new jobs, the economy ministry said in a statement.

The most recent investment announcements, from August and September, were made by alcoholic beverage company Constellation Brands (US$4.6bn), Spanish energy group Iberdrola (US$2.9bn) and car manufacturer Stellantis (US$1.6bn).

Of the total amount announced, 56% are for projects in the manufacturing sector. That sector includes the beverage (42%), automobile (18%), auto parts (13%), iron and steel (9%) and aerospace equipment (2%) industries.

Manufacturing was followed by construction (12%), commerce (11%), mass media (10%) and transportation (8%), according to the ministry.

The US (46%) once again led the list of the main investing countries, followed by Germany (11%) and Spain (8%).

Although the ministry did not refer to nearshoring, Mexico has positioned itself as a key player to facilitate the relocation of companies, mainly due to its proximity and commercial relationship with its main partner, the US.

However, a lack of infrastructure, poor energy supply and a shortage of industrial land, coupled with legal and judicial uncertainty caused by reforms pushed by former president Andrés Manuel López Obrador, could undermine the boom next year.