Amid a sluggish economic outlook, Mexican President Claudia Sheinbaum is taking decisive steps to boost economic growth by fostering collaboration with both domestic and international businesses. This initiative aims to accelerate investment projects and enhance investor confidence, with a significant focus on the electricity sector. The government’s efforts have already facilitated over 20 investment projects valued at approximately $3.75 billion this year, as reported by Mexico’s Business Coordinating Council.
In a recent meeting with Mexican and American business leaders, as well as US Ambassador to Mexico Ronald Johnson, Sheinbaum discussed investment opportunities in strategic industries, including semiconductors, railways, financial services, and medical devices. These discussions also touched on trade relations, tariffs, and the future of the United States-Mexico-Canada Agreement (USMCA). Following the meeting, it was announced that Nestlé plans to invest $2 billion in Mexico over Sheinbaum’s six-year presidential term, signaling a vote of confidence from international investors.
To support economic activity, the Mexican government is increasingly relying on private capital while working to reduce the fiscal deficit. Despite the economy growing by just 0.8% in 2025, the Finance Ministry projects growth of between 1% and 2% for 2026. Additionally, foreign direct investment reached nearly $35 billion in the first half of the year, though domestic private investment remains the larger share of overall investment.
As part of its Plan México initiative, the government aims to attract more than 5.6 trillion pesos in combined public and private investment by 2030 across various strategic sectors, including energy and transportation. Legislative changes are also being pursued to improve access to investment financing and credit, with the goal of encouraging businesses to embark on new projects and bolster Mexico’s productive capacity.
However, economic analysts warn that uncertainties surrounding US trade policy, potential tariffs, and the upcoming USMCA review could deter large-scale investments. Concerns about regulatory changes, legal certainty, and access to resources like water remain critical factors influencing business decisions.
Despite these challenges, recent figures offer some encouragement. Mexico’s gross fixed capital formation increased by 6% year-on-year in July, with private investment rising by 5.9%, indicating an uptick in economic activity. Nonetheless, analysts caution that sustained recovery in investor confidence requires ongoing efforts to maintain strong commercial ties with the United States and Canada while addressing domestic investment barriers.