The United States and Canada remained in first and second place in the 2025 index, while the United Kingdom rose from fourth to third, Japan climbed from seventh to fourth, and Germany retained its fifth spot.
Mexico fell from 21st place in 2024 to 25th in 2025 in Kearney's Global Foreign Direct Investment (FDI) Confidence Index, which ranks the economies that most attract foreign capital based on a survey of regional and business executives and leaders.
Before this pair of results, Mexico had been out of the rankings for five years in a row.
The United States and Canada remained in first and second place in the 2025 index, while the United Kingdom rose from fourth to third, Japan climbed from seventh to fourth, and Germany retained its fifth spot.
"Investors highlight the strength of American technological innovation and the high quality of Canadian infrastructure as key factors for investing in these markets," Kearney explained.
The United Kingdom and Germany benefited from perceptions of technological innovation and economic performance, while Japan improved in part due to its continued strength in technological innovation and solid wage growth.
China fell from third to sixth place, likely reflecting economic challenges in the market, including the ongoing housing crisis and trade uncertainty.
Overall, developed markets continue to dominate the rankings, accounting for 19 of the top 25 markets in the global rankings, indicating that investors may be seeking perceived security and stability in a volatile world.
According to Kearney, the key risks related to rising commodity prices and geopolitical tensions reflect investor concerns about growing global uncertainty.
“Investors are concerned about rising geopolitical risk and the possibility of subsequent supply chain disruptions, which could drive up commodity prices,” he said.
The Kearney survey found that 38% of investors consider rising commodity prices the most likely development over the next year, and 35% also cite increased geopolitical tensions as a likely development in 2025, up seven percentage points from last year.
Emerging market performance declined slightly compared to last year. Only six emerging markets are included in the core Index, two fewer than last year, as Poland and Argentina dropped out of the Top 25.
The overlap between the global and emerging market rankings places China in first place, followed by the United Arab Emirates, Saudi Arabia, Brazil, India, and Mexico. South Africa,
Overall, the Americas have the largest number of markets on the list, with eight (one less than last year), followed by Asia-Pacific with seven, the Middle East and Africa with five, and Europe also with five (one more than last year). Two of the 25 emerging markets, Kuwait and Bulgaria, appear in the Index for the first time.
The Kearney FDI Confidence Index 2025 is constructed using primary data from a proprietary survey of 536 senior executives from the world's leading corporations.
The survey was conducted in January 2025. Respondents include C-level executives and regional and business leaders. All participating companies have annual revenues of US$500 million or more. The companies are headquartered in 30 countries and span all sectors. Service sector companies account for 53% of respondents; industrial companies, 35%; and IT companies, 12%.
