Mexico | Current account confirms economic weakness in first quarter of 2020

Summary

The current account deficit fell by USD 10.2 billion in the first quarter of 2020 compared to the same period of the previous year, mainly due to a higher surplus in the trade balance on non-oil goods.

Key points

• Key points:
• Net foreign direct investment plunged 20.1% in annual terms in the first quarter of 2020
• Our forecast for a current account deficit of 0.4% of GDP for 2020 implies that Mexico will enter a phase of significant economic contraction where goods imports will fall more in annual terms than exports (-6.60% vs. -4.80%)

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