Current Account in Mexico
Mexico - Current Account
Current account deficit widens amid recovering domestic demand
The current account registered a deficit of USD 1.8 billion in the third quarter, which was larger than the previous quarter's deficit of USD 0.6 billion, but smaller than the USD 3.6 billion deficit incurred in the same quarter last year. Moreover, the reading came in above market expectations, which had the current account deficit reaching USD 3.0 billion in the third quarter. The quarterly figure was mostly led by a widening of the trade balance deficit (Q2: USD 0.1 billion; Q3: USD 2.3 billion). Exports reached USD 75.5 billion, which represented a minor improvement over the previous quarter (Q2: USD 74.7 billion) while imports rose more markedly form USD 74.7 billion in the second quarter to USD 77.8 billion in the third quarter. Furthermore, a wider deficit in the services balance also contributed to the deterioration of the current account, as it increased from USD 2.7 billion in the second quarter to USD 3.0 billion in the third quarter. Yet, the widening deficit was partially offset by an improvement in the income balance deficit (Q2: USD 3.8 billion; Q3: USD 2.1 billion). Meanwhile, the transfers balance fell from a USD 5.9 billion surplus in the second quarter to a USD 5.6 billion surplus in the third quarter, driven almost entirely by lower remittances from workers abroad, which dropped to USD 5.5 billion (Q2: USD 5.8 billion). Owing to the moderate quarterly reading, the moving annual current account deficit shrank from USD 5.3 billion in the second quarter to USD 3.5 billion in the third quarter.
Mexico - Current Account Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Current Account (% of GDP) | -2.7 | -2.3 | -1.8 | -2.1 | -0.3 |
Mexico Current Account Chart
Source: Mexico Central Bank (Banxico) and FocusEconomics calculations.
Mexico Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 6.87 | -0.24 % | Dec 31 |
| Exchange Rate | 18.93 | -0.29 % | Jan 01 |
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Economic News
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Mexico: Manufacturing PMI picks up in September; non-manufacturing PMI loses steam
October 1, 2022
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in September from August's 49.5.
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Mexico: Banxico hikes by 75 basis points in September
September 29, 2022
On 29 September, the Governing Board of the Bank of Mexico (Banxico) opted to raise the target for the overnight interbank interest rate by 75 basis points to 9.25%, marking the third consecutive 75 basis-point hike.
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Mexico: Merchandise exports gain steam in August
September 27, 2022
Merchandise exports jumped 25.2% year-on-year in August, following July’s 13.6% upturn.
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Mexico: Economic activity rebounds in July in month-on-month terms
September 26, 2022
The monthly indicator for economic activity (IGAE) rose 0.4% month-on-month in seasonally-adjusted terms in July (June: -0.3% mom), slightly above market expectations.
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Mexico: Inflation rises in August
September 8, 2022
Inflation rose to 8.7% in August from July’s 8.2%.
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