Mexico FDI ranking jumps in 2026 as nearshoring boosts investment

Mexico climbed from 25th to 19th place in Kearney’s 2026 Foreign Direct Investment (FDI) Confidence Index, marking one of the largest gains globally alongside Singapore, as investors increasingly target production hubs closer to end markets. The jump reflects rising confidence in Mexico’s role as a key manufacturing and supply chain partner to the U. S.

, even as global capital flows become more selective amid tariffs, industrial policy shifts and geopolitical risk. The full report released on Thursday shows investors are “recalibrating” toward markets that combine growth potential, geopolitical relevance and supply chain resilience.

Nearshoring tailwinds boost Mexico’s appeal Mexico’s rise in the rankings comes as companies continue to shift production closer to North America, driven by tariff uncertainty, supply chain disruptions and “China+1” diversification strategies. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); Kearney noted that both Mexico and Brazil posted notable gains, driven in part by reforms aimed at improving ease of doing business. In Mexico’s case, a new law aimed at reducing bureaucratic hurdles and streamlining government services has helped improve investor sentiment.

More broadly, investors are prioritizing technological and innovation capabilities, industrial policy alignment — cited as critical by 84% of executives, and supply chain resilience and diversification.

At the same time, 88% of surveyed executives said they plan to increase foreign direct investment over the next three years, underscoring continued appetite for global expansion despite risks.

Mexico solidifies role as North American production hub For freight markets, Mexico’s climb reinforces its position as a central node in North American manufacturing and cross-border logistics.

Rising investor confidence typically translates into: Increased industrial construction and plant expansions Higher cross-border truck and rail volumes Growing demand for customs brokerage, warehousing and drayage capacity Mexico’s No.

19 ranking places it firmly among emerging markets benefiting from supply chain realignment, alongside countries like Thailand and Malaysia that are also gaining from diversification trends.

Morgan Stanley: Domestic investment is the next catalyst While nearshoring remains a key driver, a separate report from Morgan Stanley argues that Mexico’s long-term investment outlook hinges increasingly on domestic economic reforms and private investment growth. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); In a report released on Tuesday, “Mexico’s Domestic Opportunity” — the firm noted that Mexico’s export engine remains strong, with manufacturing exports to the U. S. rising by $150 billion since 2021 to reach $535 billion in 2025.

However, the report highlights a critical shift: “The investment case hinges much more on the new administration’s ability to reinvigorate domestic growth and particularly private investment.”

Morgan Stanley pointed to several key dynamics: Exports remain robust, especially in electronics and machinery Domestic investment has lagged, declining about 8% in 2025 Policy uncertainty and institutional reforms have weighed on business confidence To address this, Mexico’s government has launched “Plan Mexico,” which aims to: window. googletag = window.

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collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668086344-0'); }); Raise investment to 28% of GDP (from ~22%) Expand public-private partnerships and infrastructure spending Create 1.

5 million jobs in manufacturing and strategic sectors USMCA review looms as key catalyst Both Kearney and Morgan Stanley highlight the upcoming 2026 USMCA review as a pivotal moment for invest