Amid a sluggish economic outlook, Mexican President Claudia Sheinbaum is intensifying efforts to boost economic growth by strengthening collaboration with both domestic and international businesses. This strategy aims to accelerate investment projects and enhance investor confidence, with a particular focus on the electricity sector. According to Mexico’s Business Coordinating Council, the government has advanced over 20 investment projects worth approximately $3.75 billion this year, showcasing an active role in facilitating business cooperation and removing investment barriers.
Sheinbaum recently convened with Mexican and American business leaders, alongside US Ambassador to Mexico Ronald Johnson, to explore bilateral economic relations and investment opportunities in key sectors such as semiconductors, railways, financial services, and medical devices. These discussions also addressed trade relations, tariffs, and the future of the United States-Mexico-Canada Agreement (USMCA).
Following these talks, Sheinbaum announced a significant commitment from Nestlé to invest $2 billion in Mexico over her six-year term. Other business representatives also signaled their interest in maintaining and expanding their investments in the country. The administration is increasingly leveraging private capital to support economic activity while working to reduce the fiscal deficit, especially as Mexico’s economy grew by just 0.8% in 2025. The Finance Ministry forecasts growth between 1% and 2% for 2026.
In the first half of the year, foreign direct investment reached nearly $35 billion, yet domestic private investment continues to represent the largest portion of overall investment. Through its Plan México initiative, the government aims to secure over 5.6 trillion pesos in combined public and private investment by 2030 across strategic sectors such as energy, transportation, highways, and airports.
To support these goals, the administration is pursuing legislative changes to improve access to investment financing and credit, with the hope of encouraging new business projects and strengthening Mexico’s productive capacity. However, economic analysts warn that uncertainty surrounding US trade policy, potential tariffs, and the upcoming USMCA review could hamper large-scale investment. Concerns about regulatory changes, legal certainty, and water access also remain significant factors influencing business decisions.
Recent investment figures provide some optimism, as Mexico’s gross fixed capital formation increased by 6% year-on-year in July, and private investment rose by 5.9%, suggesting improved activity. Nonetheless, analysts caution that these figures alone do not yet confirm a sustained recovery in investor confidence. Mexico’s economic outlook will depend heavily on maintaining strong commercial ties with the United States and Canada while effectively addressing domestic barriers to investment. The Sheinbaum administration is betting that closer engagement with businesses, improved financing opportunities, and expedited project approvals will catalyze economic growth and attract further capital.
