Mexican President Claudia Sheinbaum is intensifying efforts to boost private investment to stimulate economic growth amid a sluggish outlook. Her administration is collaborating with both domestic and international businesses to propel investment projects, particularly in the electricity sector, which have already seen over 20 projects worth approximately $3.75 billion advanced this year, according to Mexico’s Business Coordinating Council.
In a bid to strengthen economic ties, Sheinbaum recently engaged in discussions with Mexican and American business leaders, as well as US Ambassador to Mexico Ronald Johnson. The talks centered on investment opportunities in strategic industries such as semiconductors, railways, financial services, and medical devices. The future of the United States-Mexico-Canada Agreement (USMCA) and trade relations were also key topics of discussion.
Following these meetings, Sheinbaum announced that Nestlé plans to invest $2 billion in Mexico over her six-year term. Business leaders expressed interest in maintaining and expanding their investments, reflecting a growing reliance on private capital to support economic activity while the government aims to reduce its fiscal deficit.
Despite the promising investment figures, Mexico’s economic growth remains modest, with only a 0.8% increase in 2025. The Finance Ministry projects growth between 1% and 2% for 2026. Foreign direct investment reached nearly $35 billion in the first half of the year, but domestic private investment continues to dominate overall investment.
To attract more investments, the administration is pursuing legislative changes to enhance access to financing and credit, hoping to encourage new projects and boost productive capacity. However, analysts caution that uncertainties regarding US trade policy, potential tariffs, and the upcoming USMCA review could deter large-scale investments. Concerns about regulatory changes, legal certainty, and water access also persist as significant factors influencing business decisions.
While recent data offers some optimism, with Mexico’s gross fixed capital formation rising by 6% year-on-year in July and private investment increasing by 5.9%, experts warn that sustained recovery in investor confidence has yet to be established. The country’s economic future will largely depend on maintaining robust commercial ties with the United States and Canada while addressing domestic investment barriers.