Borderlands Mexico: Canada, Mexico Draw Record Foreign Investment in 2025

Why It Matters

These record inflows signal sustained investor confidence in North America’s integrated supply chain, bolstering economic growth and reinforcing the USMCA framework.

Key Takeaways

• Canada attracted $96.8B FDI, highest since 2007
• Mexico's FDI reached $40.87B, up 10.8% YoY
• U.S. contributed $15.88B to Mexico, 38.8% of inflows
• New investments in Mexico surged 132.9% to $7.38B
• Record inflows deepen North American supply-chain integration

Pulse Analysis

North America’s FDI landscape in 2025 defied global headwinds, with Canada and Mexico together drawing more than $137 billion in foreign capital. While worldwide investment to developing economies contracted, the continent’s appeal grew as firms chased lower labor costs, stable regulatory environments, and proximity to the U.S. market. Canada’s $96.8 billion inflow marked the highest level since 2007, driven largely by mergers and acquisitions in transportation, manufacturing, and corporate services. Mexico’s $40.87 billion haul—up 10.8% year‑over‑year—reflected a surge in fresh projects, especially in nearshoring‑related industrial expansion.

The dominant role of U.S. investors underscores the deepening economic interdependence fostered by the USMCA. In Mexico, American firms supplied $15.9 billion, accounting for nearly 39% of total inflows, while Canada also benefited from substantial U.S. capital, reversing a previous trend of net outflows. Beyond the United States, Canada and Spain emerged as key contributors, highlighting the diversification of source markets. Crucially, profit reinvestment accounted for two‑thirds of Mexico’s inflows, signaling confidence in long‑term returns, while new greenfield investments jumped 133%, indicating fresh capacity creation in logistics hubs and manufacturing plants.

For logistics and trade operators, the record FDI translates into expanded demand for industrial real estate, rail and intermodal infrastructure, and cross‑border freight services. Companies like Twin Eagle and TexAmericas are already scaling rail capacity and soft‑landing facilities to accommodate the influx of production and distribution assets. Although tariff volatility and political uncertainty linger, the 2025 data suggest that investors view North America as a consolidated production platform, setting the stage for continued infrastructure spending and supply‑chain optimization through 2026 and beyond.