Clear Rules and Stability: Key Factors Behind Mexico’s Economic Appeal, Says Citi
Having a transparent and predictable regulatory framework is essential for Mexico to remain an attractive destination for foreign investment and business development, according to Luis Brossier, Head of Corporate Banking at Citi Mexico. In a recent interview, the executive emphasized that both companies and investors adjust their appetite and strategies once they understand the rules of the game, which allows them to navigate periods of uncertainty that are inherent to the markets.
Brossier acknowledged that, in the short term, factors such as political uncertainty—whether at the local level due to processes like the upcoming judicial election, or at the international level due to decisions by governments like that of the United States—can create caution and a “wait and see” approach among clients. Nevertheless, he stressed that these effects are usually temporary and that, in the medium term, Mexico is well positioned to attract investments, supported by its operational framework and strategic location.
A reflection of this confidence is the record high of foreign direct investment that Mexico received last year, totaling more than $36.8 billion, according to figures from the Ministry of Economy. According to Brossier, these numbers show that the country continues to be attractive despite both global and local volatility.
Citi Mexico, present in over 95 countries, highlights the importance of offering clients tools to navigate complex global environments, such as financing solutions, technology advisory, manufacturing digitalization, power generation, and infrastructure development. The bank also provides hedging solutions to mitigate currency volatility, as well as green financing mechanisms, adapting to international trends and new regulatory requirements.
Another factor that could further boost economic dynamism is the global trend of supply chain relocation—a phenomenon where Mexico has gained relevance thanks to its proximity to the United States and its integration into trade agreements. The recent announcement of the ‘Mexico Plan’ by President-elect Claudia Sheinbaum has been met with optimism, as it seeks to promote investments in key areas that will require greater capital inflows and advanced financial services.
Regarding the financial environment, the expectation of further cuts to the Bank of Mexico’s benchmark interest rate—which currently stands at 8.50% following the most recent 50-basis-point reduction—could boost credit demand, especially if a scenario of certainty and concrete investment projects materializes. For Brossier, having visibility into the future of rates and other macroeconomic indicators is crucial to reactivating business decisions.
In summary, for corporate banking and international investors, the existence of clear rules and proper management of volatility constitute the main drivers of confidence in Mexico’s economic outlook. While challenges and uncertainties remain, a combination of sound fundamentals, openness to capital, and coherent policies keep Mexico on the radar of major global firms, with positive prospects for both investment and economic growth in the medium term.
