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Kearney: FDI Confidence in Brazil, Mexico, Argentina Falls
Global uncertainty is weighing on investor sentiment more broadly.
BY LATINVEX STAFF
Brazil and Mexico fell on the latest Kearney’s FDI Confidence Index, while Argentina fell out of the top 25 top markets.
The index measures foreign direct investor sentiment for different countries.
Overall, emerging market performance on the Index declined slightly relative to last year, with only six markets making the main Index – down two from 2024. Further, optimism levels overall for emerging markets are almost nine percentage points lower than those reported last year.
“Global uncertainty is weighing on investor sentiment more broadly,” says Terry Toland, a Principal in Kearney’s Global Business Policy Council and co-author of the GBPC’s FDI Confidence Index. “For example, 35 percent of investors cite an increase in geopolitical tensions as a likely development in 2025, up seven points from last year. And investors are also concerned about more restrictive business regulations in developed and emerging markets alike.”
Market rankings are developed based on a weighted score measuring surveyed investors’ likelihood of investing in each market in the next three years. These rankings are not based on Kearney’s judgement, rather on investor responses to its survey, Toland says.
“Our 2025 survey was held in January and had 536 respondents,” he says. “While these responses give us insights into the factors that investors value most highly and the strengths they see in an individual market, they do not explicitly explain why an individual market may fall in the rankings relative to the previous year.”
BRAZIL AND MEXICO
Brazil – Latin America’s top economy — now ranks 21st globally.
“Brazil falls two positions from 19th to 21st in the survey this year, though investors point to the market’s strengths in natural resources, economic performance, talented labor pool, and ease of doing business as top market strengths,” Toland says. “Nevertheless, the market’s marginally lower ranking may be attributed to country’s climate challenges, as 2024 saw an 80 percent rise in wildfires—a threat to human life, biodiversity, and the natural resources that survey respondents value.
Meanwhile, Mexico – the region’s second-largest economy – now ranks in 25th place.
“Mexico slips four positions from 21st to 25th this year, though investors cite the market’s talent/skilled labor pool and economic performance as top strengths,” Toland says. “The US and Mexico are deeply interconnected, and threats to that relationship may have hurt investor confidence. Mexico became the top US goods trading partner in 2023, surpassing China, and the US is the top source of foreign investment in Mexico, holding nearly $145 of FDI stock in Mexico as of 2023. Tariffs and discord over issues related to fentanyl and illegal immigration could threaten investor stability and economic performance.”
| FDI Confidence Index | ||||
| LA Rk | EM Rk | GL Rk | Country | Value |
| 1 | 4 | 21 | Brazil | 1.59 |
| 2 | 6 | 25 | Mexico | 1.51 |
| 3 | 9 | Argentina | 1.46 | |
| 4 | 15 | Chile | 1.3 | |
| 5 | 20 | Colombia | 1.27 | |
| 6 | 23 | Costa Rica | 1.19 | |
| 7 | 24 | Peru | 1.16 | |
| 8 | 25 | Uruguay | 1.15 | |
| LA Rk= Latin America Rank. EM Rk= Emerging Markets Rank. | ||||
| GL Rank= Global Rank | ||||
| Sources: Kearney 2025 FDI Confidence Index; Latinvex | ||||
ARGENTINA AND DOMINICAN REPUBLIC
Argentina fell off the global top 25 and now ranks ninth on the separate emerging markets index from Kearney. That’s down one spot from last year.
“Investors highlight the market’s strong talent and labor pool and natural resources as top strengths,” Toland says. “Argentina returned to the top 25 global rankings in 2024 in the 24th spot after an 11 year hiatus (previously, the market had ranked 23rd in 2013). Falling from the top 25 global markets this year is likely a broader reflection of the headwinds faced by emerging markets in the global rankings.”
The Dominican Republic was dropped off the emerging markets index this year.
“Though reform efforts are underway, the US State Department notes that FDI confidence in the Dominican Republic is hindered by perceptions of corruption, bureaucratic hurdles, inconsistent application of judicial decisions in favor of foreign investors, and non-standard procedures in customs valuation and classification of imports,” Toland says. “These factors likely contributed to the market slipping from the top 25 emerging markets in 2025.”
VALOR ECONOMICO TURNS 25
Brazilian business newspaper Valor Economico turns 25. It has become the leading business source in the South American country, somewhat like a Brazilian version of The Wall Street Journal or the Financial Times.
The publication was founded as a joint venture between Brazil’s two largest media groups, Globo and Folha, and has been wholly owned by Grupo Globo since 2016.
Today, Valor also includes a family of specialized publications focused on business and finance. In 2023, this integration expanded into a larger platform designed to offer broader coverage and greater visibility on key themes such as innovation and startups (via Época Negócios), the automotive industry (through Autoesporte), and entrepreneurship (via PEGN). One of the first results of this integration was the consolidation of Valor’s agribusiness desk with Globo Rural’s, launching the Nova Globo Rural project—now the largest agribusiness platform in Brazil.
The Valor ecosystem, already home to platforms like Valor Investe, Pipeline, and the real-time news service Valor PRO, was recently expanded with the addition of Valor One, a new digital platform aimed at individual investors. The group also maintains a prominent presence in Brazil’s business landscape with annual awards and recognitions such as Valor 1000, Executivo de Valor, Valor Inovação, Melhores do Agronegócio, Startups to Watch, Great Place to Work, Car of the Year, and Top Franchises.
MEXICO PROGRAM MOVES TO NEW THINK TANK
The Wilson Center’s Mexico Program has moved house. After Donald Trump stopped funding to the Wilson Center – a widely respected think tank – its Mexico Program was able to find a new home: The Inter-American Dialogue.
Lila Abed, who led the Mexico Program at the Wilson Center, will lead it at the Inter-American Dialogue as well.
“The Dialogue is honored to build on the outstanding legacy of the Mexico Institute, a platform shaped by visionary leaders from across the public and private sectors,” Rebecca Bill Chavez, President & CEO of the Inter-American Dialogue, said in a statement. “With Lila’s leadership and the Dialogue’s hemispheric scope and convening power, we are uniquely positioned to deepen understanding and cooperation among Mexico, the United States, and the region.”
As the only program in Washington, DC fully dedicated to the U.S.–Mexico relationship, the Mexico Program is a strategic and timely addition the dialogue’s regional agenda, the Inter-American Dialogue added.
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