Mexico | Oil-related goods cause a higher current account deficit

Summary

We expect the trade balance to show lower deficits or even surpluses in some quarters of next year under a scenario of a significant slowdown of global economic growth. Moreover, nearshoring and relocation of global supply chains will continue supporting FDI flows into Mexico in the medium and long run.

Key points

• Key points:
• The current account deficit in the third quarter of 2022 was higher than the deficit posted in the same quarter of last year mainly due to the higher deficit in the balance on oil-related goods.
• Net foreign direct investment posted a decrease of 4.1% YoY in January-September 2022 when comparing preliminary figures.

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