Investment in Mexico falls again; nine months of decline: INEGI

Gross fixed investment in Mexico fell 7.1% year-on-year in May, marking nine consecutive months of annual decline. , the National Institute of Statistics and Geography (INEGI) reported Tuesday, as uncertainty continues over trade measures adopted by the United States.

This figure for the fifth month of 2025 was the result of a 10.3% annual contraction in machinery and equipment and a 4.3% annual contraction in construction , the autonomous institute detailed based on original figures.

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Private investment fell 4.9% year-on-year, and public investment plummeted 25.8%.

On the other hand, investment rose 0.9% in May compared to the previous month, according to seasonally adjusted data.

This was due to a 1.4% monthly increase in construction, although machinery and equipment remained unchanged compared to the previous month.

The figures reflect Mexico's economic performance, which grew 1.5% annually in 2024 , although in the fourth quarter it fell 0.6% quarterly, its first contraction in three years.

Mexico's gross fixed investment grew 3.4% annually in 2024 and soared to 19.7% in 2023 due to the rise of nearshoring.

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Previously, it rose 6% annually in 2022 and rebounded 10% in 2021 after the worst of the coronavirus pandemic, which caused an 18.2% contraction in investment in 2020.

Gross fixed investment provides an understanding of short-term investment behavior, according to INEGI (National Institute of Statistics and Census), and is comprised of assets used in the production process for more than one year.

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