Mexico is still drawing investor interest, but interest is not the same as action. Santander México’s chief executive says capital is available and lenders are prepared to finance major projects, yet companies are hesitating amid tariff threats, geopolitical tension, and North American trade talks, which cloud the outlook. The comments come as Mexico posts record foreign investment on paper but slower growth in the real economy. That gap helps explain why infrastructure and energy continue to dominate the business conversation.
Money is there, but waiting for clarity
Felipe García Ascencio, chief executive of Santander México, says the problem is not a shortage of capital. Domestic and foreign investors still want exposure to Mexico, he says, and they are prepared to finance new business, transport, and energy projects. What has changed is timing. Companies that were ready to move are waiting for a clearer signal on tariffs, the review of T-MEC, and broader geopolitical risk. Ahead of the 89th Convención Bancaria in Cancún, he described that hesitation as the main drag on confidence.
He also said the pause should not be read as a loss of faith in Mexico. Santander says it remains committed to the market and has a $2 billion investment program in Mexico, while preparing two new road projects. The bank’s position is simple. Capital is available. Lenders are willing. Investors still see Mexico as well-placed within North America. The missing piece is confidence that today’s trade framework will remain workable after the current round of negotiations.
Why the trade review matters
For many international readers, T-MEC, or USMCA, is the trade pact that underpins much of Mexico’s manufacturing economy. Roughly 80 percent of Mexican exports go to the United States, so even modest changes to regional rules can affect factory plans, supplier contracts, and hiring. The United States and Mexico began formal review talks the week of March 16. U.S. officials have said the discussions will focus on cutting dependence on imports from outside the region, tightening rules of origin, and securing North American supply chains.
That matters because companies do not invest solely on demand. They also invest in predictability. If a manufacturer is unsure whether imported parts will still qualify under North American rules, it may delay an expansion. If a developer expects tariffs to raise equipment costs, it may slow land purchases or hiring. Mexican businesses have already signaled how important the pact is. A public consultation summarized by Mexico’s Economy Ministry found broad support for preserving the three-country agreement as a source of certainty for investment and regional supply chains.
Interest in Mexico is still real
The broader economic picture explains why García Ascencio’s remarks landed so quickly. Mexico closed 2025 with a record $40.871 billion in foreign direct investment. Trade with the United States also reached a new high. Those figures show that Mexico still attracts serious international interest. Its location, industrial base, and trade integration remain strong selling points. Yet the country’s economy grew only 0.8 percent in 2025. That gap between investor appetite and real growth points to bottlenecks that money alone does not solve.
Infrastructure, energy and what happens next
This is why infrastructure and energy keep returning to the center of the debate. Nearshoring needs more than market access and cheaper production costs. It needs roads that move cargo on time, ports that can absorb higher volumes, enough power for factories and data centers, and urban services that can keep pace with industrial growth. Banks can finance those needs. But they still need a stronger pipeline of projects, clearer rules, and faster execution from both the public and private sectors.
The federal government has already tried to answer that need. In February, it announced a 5.6 trillion peso infrastructure plan for 2026 to 2030. The plan is built around public and mixed investment in sectors that include energy, highways, ports, water, health, and rail. That is why García Ascencio keeps stressing new capacity, not just financial activity. Refinancing an existing asset may be good business, but it does not change Mexico’s productive capacity the way a new highway, power project, or logistics upgrade can.
For expats, retirees, and foreign business owners living in Mexico, this is not just a boardroom story. Large investment decisions shape local job markets, supplier networks, industrial rents, traffic, and service demand. If projects move ahead, the effects can spread into local economies through construction, transport, and consumer spending. If they stall, growth can continue to look slower than the headlines suggest. That is the core message from Santander. The money may be ready, but Mexico still needs clearer rules and faster project delivery to put it to work.
With information from INEGI, Proyectos México / Secretaría de Economía
