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
|Current Account (% of GDP)||-2.5||-1.9||-2.6||-2.3||-1.7|
5 years of economic forecasts for more than 30 economic indicators.
Mexico Current Account Chart
Source: Mexico Central Bank (Banxico) and FocusEconomics calculations.
|Bond Yield||6.87||-0.24 %||Dec 31|
|Exchange Rate||18.93||-0.29 %||Jan 01|
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January 10, 2020
Consumer confidence was unchanged in December, with the seasonally-adjusted consumer confidence indicator published by the Statistical Institute (INEGI) coming in at 43.4 points, matching November’s reading.
January 9, 2020
Consumer prices rose 0.56% from the previous month in December, following the 0.81% month-on-month increase logged in November.
January 2, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) inched up to 46.8 in December from 46.6 in November, signaling a slightly softer contraction in the manufacturing sector compared to November.
January 1, 2020
Remittances totaled USD 2.9 billion in November (October: USD 3.1 billion), a 2.3% decline from the same month a year ago (October: +3.6% year-on-year) and marking the first drop since March 2016.
December 27, 2019
Exports dipped 2.9% year-on-year in November, following October’s softer 1.5% slip and marking the third consecutive month of falling exports.