Mexico Jumps to 19th for Foreign Investment Confidence

Mexico just landed in the top 20 economies most attractive to global investors, climbing from 25th to 19th place in a single year.

The leap came in Kearney's 2026 Foreign Direct Investment Confidence Index, an annual survey of business executives worldwide. Only Singapore rose faster, jumping seven spots to claim 8th place.

The rankings measure where companies plan to invest over the next three years. Mexico's surge reflects its position as part of North America's economic powerhouse alongside the United States and Canada, which claimed the top two spots.

"Mexico is part of a large regional platform," said Gerardo Rocha, managing partner of Kearney México. The nation attracted a record $40.87 billion in foreign investment last year as companies reconfigured their supply chains to bring manufacturing closer to home.

From 2020 through 2023, Mexico didn't even crack the top 25. It returned in 2024 at 21st place, slipped to 25th last year, and now sits comfortably in the upper tier.

President Claudia Sheinbaum's Plan México offers tax incentives that caught investors' attention. Mexico's existing manufacturing program also appeals to companies by allowing duty-free imports of raw materials and components, as long as finished products get exported.

The survey found telecommunications as Mexico's most attractive sector, with aerospace, transportation, health, pharmaceuticals and financial services also drawing interest.

The Ripple Effect

Mexico's infrastructure for energy and water supply gives it competitive advantages over other emerging markets. Its partnership in the USMCA free trade deal with the U.S. and Canada creates opportunities that extend beyond Mexico's borders, strengthening North America's position in global manufacturing.

The ranking arrives as companies worldwide navigate geopolitical tensions and seek reliable places to build. Mexico's geographic position and trade agreements make it an increasingly obvious choice for businesses serving North American markets.

The country faces challenges ahead, particularly in technological innovation where it ranked lowest among the top 25 nations. Executives told surveyors that innovation capabilities now matter more than traditional factors like regulations when choosing where to invest.

Still, Mexico's trajectory tells a story of momentum, showing what happens when a nation positions itself at the center of a global economic shift toward regionalized supply chains.