Nearshore Americas

Queretaro Rides Nearshoring Wave; FDI Surges 16% in Q1 2024

The Mexican state of Queretaro attracted over US$489 million in foreign direct investment (FDI) during Q1 2024, a 16.4% increase compared to investment flows from a year ago.

Roughly 78% (US$381.9 million) of the total FDI flows stemmed from reinvestments by existing foreign companies, according to the country’s Economy Ministry.

The manufacturing sector was the primary recipient of FDI in Queretaro, garnering more than 65% of the total (US$318 million). The transportation, postal and storage segment followed closely, attracting US$131.8 million.

Mexico has for years been considered a prime beneficiary of the political and economic tensions between China and the US, as well as of the fallout of supply chain disruptions during the COVID and post-COVID eras

Many foreign companies (mainly from the US) have found it more convenient to set up their operations in Mexico. Exporting from there allows them to circumvent heavy tariffs and take advantage of a bubbling ecosystem for the manufacturing, agricultural, logistics and technology sectors.

Canada is the leading source of foreign investment in Queretaro, contributing US$151.4 million. The United States followed in second place with US$137.5 million in FDI for the state, accounting for 28.1%. There are more than 540 US companies operating in Querétaro.

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Germany secured the third position with US$127 million. South Korea and Spain rounded out the top five investor nations, contributing US$20.1 million (4.1%) and US$9.8 million (2%), respectively.

Across Mexico, foreign companies made 93 investments valued over US$36 billion during the first quarter of the year.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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