Mexican President Claudia Sheinbaum is intensifying efforts to boost economic growth by collaborating with both domestic and international businesses. This initiative aims to stimulate investment projects and bolster investor confidence amid a tepid economic landscape. The government has facilitated over 20 investment projects valued at approximately $3.75 billion this year, with a significant focus on the electricity sector, according to Mexico’s Business Coordinating Council.
In a recent meeting with Mexican and American business leaders, alongside US Ambassador to Mexico Ronald Johnson, Sheinbaum discussed bilateral economic relations and investment opportunities in key industries such as semiconductors, railways, financial services, and medical devices. The discussions also covered trade relations, tariffs, and the future of the United States-Mexico-Canada Agreement (USMCA). Following this meeting, Sheinbaum announced Nestlé’s plan to invest $2 billion in Mexico over her six-year presidential term.
The Sheinbaum administration is increasingly relying on private capital to drive economic activity while working to reduce the fiscal deficit. In 2025, Mexico’s economy grew by a modest 0.8%, and the Finance Ministry projects growth between 1% and 2% for 2026. Despite foreign direct investment reaching nearly $35 billion in the first half of the year, domestic private investment remains the dominant component of overall investment. Through its Plan México initiative, the government aims to attract over 5.6 trillion pesos in combined public and private investment by 2030, focusing on sectors like energy, transportation, highways, and airports.
To support these goals, legislative changes are being pursued to improve access to investment financing and credit, with the hope of encouraging businesses to launch new projects and enhance Mexico’s productive capacity. However, economic analysts caution that uncertainties surrounding US trade policy, potential tariffs, and the upcoming USMCA review might deter large-scale investments. Concerns about regulatory changes, legal certainty, and water access also persist as factors influencing business decisions.
Recent investment figures provide some optimism, with Mexico’s gross fixed capital formation increasing by 6% year-on-year in July, and private investment rising by 5.9%. While these numbers suggest improved activity, analysts warn that a single month of growth does not necessarily indicate a sustained recovery in investor confidence.
The economic outlook for Mexico will partially depend on its ability to maintain robust commercial ties with the United States and Canada while addressing domestic barriers to investment. The Sheinbaum administration is betting on closer engagement with businesses, enhanced financing opportunities, and expedited project approvals to spur economic growth and attract further capital.