Mexican President Claudia Sheinbaum is ramping up efforts to collaborate with both domestic and international businesses in a bid to rejuvenate the country’s sluggish economy. The administration is actively working to advance over 20 investment projects valued at approximately $3.75 billion, focusing primarily on the electricity sector, according to Mexico’s Business Coordinating Council.
In recent discussions with Mexican and American business leaders, as well as US Ambassador to Mexico Ronald Johnson, Sheinbaum emphasized the importance of bilateral economic relations and investment opportunities in key industries such as semiconductors, railways, financial services, and medical devices. Topics like trade relations, tariffs, and the future of the United States-Mexico-Canada Agreement (USMCA) were also on the agenda.
Following these meetings, Sheinbaum announced Nestlé’s commitment to invest $2 billion in Mexico during her six-year presidential term. Additionally, business representatives showed interest in sustaining and expanding their investments in the country. This shift towards leveraging private capital is part of a broader effort by the government to stimulate economic activity while managing the fiscal deficit.
Despite foreign direct investment reaching nearly $35 billion in the first half of the year, domestic private investment remains the predominant source of overall investment. The government’s Plan México initiative aims to attract over 5.6 trillion pesos in combined public and private investment by 2030, targeting sectors such as energy, transportation, and infrastructure.
To facilitate these ambitions, legislative reforms are underway to enhance access to investment financing and credit. Officials hope these measures will encourage enterprises to embark on new projects and bolster Mexico’s productive capacity. However, economic analysts caution that uncertainties surrounding US trade policies, potential tariffs, and the impending USMCA review could deter large-scale investment. Concerns about regulatory changes and access to resources like water also continue to influence business decisions.
Recent economic data offers a glimmer of hope, with Mexico’s gross fixed capital formation rising by 6% year-on-year in July and private investment increasing by 5.9%. Yet, analysts warn that a single month’s growth is not sufficient to declare a sustained recovery in investor confidence. The Sheinbaum administration’s challenge lies in maintaining strong commercial ties with major partners like the United States and Canada while addressing domestic investment barriers to foster economic growth and attract further capital.