Foreign Investment In Mexico Hit $31 Billion in First Half of 2024

High Point, NC, September 20, 2024-"Foreign direct investment in Mexico topped $31 billion in the first six months of the year, an all-time high according to the country’s Ministry of Economy. This year is pacing 7% higher than 2023,” reports Furniture Today.

“Most investment came from companies already in Mexico. Companies with an existing facility invested $30 billion, while new investments came in at more than $900 million.

“‘For the second consecutive year, we highlight the unprecedented amount of reinvestment of profits by companies in the country, due to economic stability, the good business environment and the competitive advantages offered, an ideal situation to expand and improve their production processes, becoming companies that attract new investments,’ the ministry said in a news release.

The flooring industry has seen recent investment in Mexican operations from both Mohawk and Novalis.

“For the second quarter, the U.S. was Mexico’s main investment partner, accounting for 44% ($13.7 billion) of all foreign investment. Germany ($4.2 billion) and Japan ($3 billion) were next,” continues Furniture Today.

“Around 54% of total foreign investment is in manufacturing, with notable industries being equipment and beverages and tobacco. About 46% was concentrated in Mexico City, followed by the Mexican states of Nuevo Leon (7%), Baja California (6%) and the state of Mexico (5%).

“Total trade between the U.S. and Mexico also hit a record, totaling $415 billion for the first six months of the year. June marked the sixth straight month Mexico has been the United States’ top trade partner, with around 16% of all U.S. imports coming from the country.

“In June, the U.S. imported $191 million in furniture from Mexico, representing 0.45% of total trade.”

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