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)||-1.9||-2.6||-2.2||-1.7||-1.8|
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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June 1, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) fell deeper in negative territory from 41.0 in April to 39.2 in May.
May 26, 2020
The monthly indicator for economic activity (IGAE) fell 1.3% in seasonally-adjusted, month-on-month terms in March, following February’s 0.6% slip and marking the worst decline since January 2009.
May 26, 2020
The economy contracted at the steepest rate since the 2009 global financial crisis in the first quarter as the Covid-19 pandemic started to bite, with GDP falling 1.4% on an annual basis (Q4 2019: -0.7% year-on-year).
May 25, 2020
Exports collapsed 40.9% year-on-year in April as Covid-19 took its toll, following March’s 1.6% slip and marking the steepest fall since data collection began in the early 1990s.
May 14, 2020
At its 14 May meeting, the Governing Board of the Bank of Mexico (Banxico) decided to lower the target for the overnight interbank interest rate by 50 basis points to 5.50%, marking the eighth consecutive cut and the lowest since November 2016.