Mexico is poised to attract $106.418 billion in foreign direct investment (FDI) over the next two to three years.Based on international companies’ plans, this forecast aligns with a trend called nearshoring.

Nearshoring involves relocating supply chains closer to their end markets.Manufacturing companies are the main contributors, making up 40% of this investment.Additionally, 67% of the investment will expand existing foreign-owned businesses in Mexico.

The Mexican Ministry of Economy shared these details.Raquel Buenrostro, head of the Ministry, stated that these investment plans show foreign investors’ growing confidence.They also indicate new companies’ interest in starting operations in Mexico.Among the planned investments are automotive centers, like Tesla’s extensive projects in Mexico, and natural gas transport initiatives.Mexico Set for $106 Billion Foreign Investment Boost.

(Photo Internet reproduction)There are also plans for building industrial parks. The expected FDI for Mexico surpasses the $35.291 billion recorded in 2022.

That year saw the highest FDI in seven years.By the third quarter of 2023, Mexico had already received $32.926 billion in FDI.

This amount was 2.4% higher than the same period in 2022.One-fourth of the future investments will come from firms not yet in Mexico.

These investors are mainly from China, Taiwan, Denmark, and Germany.This diversification marks a shift in the origin of Mexico’s investment sources.

This investment news coincides with U.S.

Treasury Secretary Janet Yellen’s visit to Mexico.Yellen has emphasized the U.S.’s need to lessen its dependence on Chinese manufacturing.

The U.S.

remains Mexico’s top FDI source.In the coming years, U.S.

companies are leading the way with $42.095 billion in investment commitments to Mexico.China, currently ranked 80th as an FDI source in Mexico, has pledged $12.610 billion.