FDI in machinery and equipment manufacturing in Mexico registers a downward trend in the last three years.
After reaching a level of US$1.699 billion in 2021, FDI arrivals in this subsector decreased to US$299 million in 2022.
They then dropped to US$49 million in 2023 and finally, from January to September 2024, they had a negative figure of US$1,203 million.
FDI in machinery and equipment manufacturing
This type of machinery and equipment is used for the production of plastics, beverages, food, textiles, glass, air conditioning, metalworking products and engines, among others.
Below is the trend of FDI arrivals in machinery and equipment manufacturing, in millions of dollars, according to data from the Ministry of Economy:
- 2018: 877.
- 2019: 201.
- 2020: 797.
- 2021: 1,699.
- 2022: 299.
- 2023: 49.
- January-September 2024: -1,203.
Mexican economy
During the third quarter of 2024, the Mexican economy showed steady growth. Moreover, this pace accelerated compared to the previous four quarters.
This advance was mainly due to the dynamism of domestic demand. Factors such as increased consumer confidence, job creation and higher real wages contributed to this performance.
Greater investment in the expansion of productive capacity and an increase in the mobilization of merchandise, both within and outside the country, strengthened economic activity. These elements consolidated a favorable environment for growth.
In this context, according to INEGI’s timely estimate, for the third quarter of 2024, GDP grew 1.0% quarter-over-quarter with seasonally adjusted figures.
By industry branch, these were the FDI inflows in machinery and equipment manufacturing to Mexico in the first three quarters of 2024, in millions of dollars:
- Manufacture of machinery and equipment for agriculture, construction and extractive industries: 94.2.
- Production of machinery and equipment for manufacturing industries, except metalworking: 21.9.
- Manufacture of machinery and equipment for commerce and services: 40.4.
- Manufacture of air conditioning, heating, industrial and commercial refrigeration equipment: -1,444.0.
- Production of machinery and equipment for the metalworking industry: 4.7.
- Manufacture of internal combustion engines, turbines and transmissions: 52.0.
- Manufacture of other machinery and equipment for general industry: 27.6.