Mexico economists warn of low new foreign investment and legal uncertainty

Economists and financial experts are raising concerns regarding Mexico's economic growth and the true nature of its foreign direct investment (FDI). Guillermo Ortiz Martínez, former governor of the Bank of Mexico, warned that while official indicators may appear positive, more than 75% of foreign investment in the country consists of the reinvestment of profits by companies already operating in Mexico, rather than new capital entering the country.

Ortiz attributed this lack of new investment to the erosion of the rule of law, the removal of autonomous regulatory bodies, and recent judicial reforms, which have diminished the legal certainty required by international corporations. He also noted that increasing the minimum wage without corresponding productivity gains poses economic risks.

In a separate effort, approximately one hundred economists have called on the Mexican government and Congress to prioritize investment, legal certainty, and macroeconomic stability in the 2027 budget discussions. This group, representing universities, research centers, and business organizations, intends to submit over 50 proposals to the Ministry of Finance. They argue that while total investment remains above 22% of GDP, increased resources are necessary to address infrastructure gaps and boost productive capacity.