Domestic private investment and foreign investment in Mexico are following radically different trajectories. While foreign investment is reaching historic highs, domestic investment has effectively gone on strike. Since Claudia Sheinbaum’s electoral victory in July 2024, domestic private investment growth has been negative in seven of eight quarters.
The divergence is so striking that we have dedicated this week’s Mexico Decoded essay to explaining it, examining the three main reasons Mexican business leaders give for withholding investment, concerns that foreign investors do not appear to share.
