Mexico is establishing itself as the leading global nearshoring destination, according to BBVA. The country’s strategic location, robust domestic market, and skilled young workforce make it an attractive choice for companies relocating production closer to consumer markets. Carlos Serrano, BBVA’s Chief Economist, noted that Mexico’s favorable geographic position and a domestic market of 130 million people, coupled with a strong trade relationship with the U.S., which surpassed $800 billion last year, enhance its appeal for Foreign Direct Investment (FDI). China’s recent decline in FDI, driven by rising transportation costs and increasing wages, has prompted many companies to consider Mexico as a viable alternative. At the «Nearshoring Connection CDMX» event, Fadlala Akabani Hneide, Secretary of Economic Development for Mexico City, emphasized the city’s readiness to attract international businesses. About 400 companies, mainly from Europe, the U.S., and China, are interested in setting up operations in Mexico. Nearshoring is expected to boost exports in sectors such as automotive, aerospace, renewable energy, electronics, and pharmaceuticals. From 2019 to early 2024, Mexico City attracted over $57 billion in FDI, accounting for 30% of the national total. In the first quarter of 2024 alone, it received $12 billion, representing 59% of the national FDI. This underscores Mexico’s role as a crucial commercial partner and an attractive destination for investment and production relocation.
- Gutiérrez, J. (2024, 12 agosto). México, país con mejores condiciones para el ‘nearshoring’: BBVA. La Jornada. https://www.jornada.com.mx/noticia/2024/08/12/economia/mexico-pais-con-mejores-condiciones-para-el-nearshoring-bbva-6345
