The Inter-American Development Bank estimates that nearshoring could bring $78 billion in investments to Latin America. According to the Economic Commission for Latin America and the Caribbean (ECLAC), the region’s projected economic growth rate in 2025 is 2.4%. Thanks to nearshoring, Mexico attracted more than $35 billion in foreign direct investment in 2024, highlighting its role as one of the leading Latin American countries in nearshoring.
According to Logística de México (LDM), a consulting firm specializing in supply chain management, Latin America is positioning itself as a key region for attracting foreign direct investment (FDI) thanks to its proximity to major markets like the United States, its trade agreements, and the quality of its workforce.
LDM highlighted that Costa Rica, Brazil, and Mexico stand out due to their favorable conditions for nearshoring, creating opportunities in high-tech manufacturing, medical devices, automotive, and consumer products. Other countries, such as Colombia, Panama, and Peru, are making significant strides in enhancing their logistical infrastructure, free trade policies, and economic incentives, solidifying their positions among the Latin American countries leading nearshoring.
Costa Rica: Sustainability and Specialized Talent
Costa Rica has established itself as an attractive destination for investors, particularly from the United States, which accounts for more than 70% of its FDI. Its focus on sustainability—98% of its electricity is generated from renewable sources—and highly skilled workforce have been key to its success.
The country boasts a strong Free Trade Zone Regime, with parks like The Green Park offering world-class infrastructure and tax benefits for foreign companies. Additionally, a strategy launched by PROCOMER aims to strengthen local ties and create new employment opportunities by promoting knowledge transfer and regional development, according to LDM. The country’s commitment to environmental responsibility and workforce training makes it a key player among Latin American countries leading nearshoring.
Brazil: A Thriving Economic Giant
With a population of 215 million and ranking as the world’s ninth-largest economy, Brazil has become a magnet for Chinese automakers such as Great Wall Motors and BYD and investments in energy, agriculture, and technology.
The government of Luiz Inácio Lula da Silva has implemented bilateral agreements and public incentives to attract foreign capital, solidifying the country as a strategic hub for production and trade in South America. Brazil’s diverse economy, extensive labor market, and rich natural resources provide a stable foundation for nearshoring operations.
Mexico: The Gateway to North America
LDM reaffirmed that Mexico’s proximity to the United States, combined with the advantages of the United States-Mexico-Canada Agreement (USMCA), positions the country as a natural leader in nearshoring in Latin America. Multinational companies find in Mexico a combination of competitive labor costs, efficient supply chains, and a robust domestic industry, particularly in the automotive sector.
Foreign trade plays a crucial role in Mexico’s economy, with more than 45% of its imports from the United States and a steady flow of investments from Asia and Europe. With a change in government on the horizon, an economic revival is expected to enhance these competitive advantages further. However, LDM warned that uncertainty remains regarding the potential impact of protectionist policies, which could be reinstated by Donald Trump, on foreign investment in the country. Despite these challenges, Mexico remains at the forefront of the Latin American countries leading nearshoring efforts.
Colombia: A Strong Structure
Bogotá and Medellín are emerging as key relocation hubs thanks to their continuously improving logistics infrastructure, tax incentives in free trade zones, and competitive business ecosystems. Additionally, Barranquilla plays a strategically important role, as its port—one of the most significant in the region—has been crucial in boosting foreign trade and facilitating the movement of goods to international markets.
Barranquilla’s sustained growth as a logistics and port hub complements the efforts of Bogotá and Medellín, driving national economic dynamism. Colombian exports of non-basic products are expected to grow by 11% in 2025, solidifying the country as a high-potential emerging market. These developments place Colombia among the promising Latin American countries leading nearshoring expansion in South America.
Panama: Competitive Economic Zones
The Panama Canal and special economic zones give the country a unique competitive advantage in global trade. The dollarization of its economy eliminates exchange rate risks, while its increasingly bilingual and skilled workforce attracts key sectors such as logistics and industry. Panama Pacifico, a special economic area, has become a magnet for international companies looking for a strategic location to facilitate trade between Asia, North America, and South America.
Panama’s government continues implementing policies to strengthen its position as a logistics hub. Recent investments in infrastructure and digital transformation initiatives further enhance the country’s ability to attract multinational corporations.
Peru: A Strategic Trade Hub
For Peru, the development of the Port of Chancay, whose inauguration was scheduled for 2024, marks a strategic milestone in its logistics infrastructure. Located 80 kilometers from Lima and developed by COSCO Shipping, this port directly connects Latin America with Asia, facilitating international trade and reducing logistics costs.
In the context of nearshoring, the Port of Chancay enhances foreign investment attraction by offering a strategic location and modern infrastructure. This project strengthens Peru’s role as a key hub in global supply chains, boosting its commercial competitiveness. With these improvements, Peru joins the ranks of Latin American countries leading nearshoring by offering vital trade connections and logistical advantages.
“Nearshoring is a trend and a strategy redefining global supply chains. With its proximity to major markets and highly skilled talent, Latin America is emerging as the epicenter of this transformation,” stated José Ambe, CEO of Logística de México.
As nearshoring continues to gain momentum, Latin America is becoming one of the most promising regions for 2025. Countries like Costa Rica, Brazil, and Mexico lead the way, attracting investment, creating jobs, and fostering collaboration between businesses and local communities. The consulting firm concluded that this transformation redefines global supply chains and drives regional economic and social development, positioning Latin America as an increasingly important player in the global market.