Mexico registers highest current account surplus

29 Aug 2019

According to central bank data, Mexico registered its greatest current account surplus since data was first recorded in 1980.

In the second quarter, its current account recorded a surplus of $5.143 billion – which was also the first surplus seen since the second quarter of 2010. 

The surplus equated to 1.6% of gross domestic product (GDP). 

Meanwhile, the first half of 2019 saw Mexico register a deficit of $3.365, with a current account deficit of $8.508 billion.
 
In a research note, Alberto Ramos, head of Latin American research at Goldman Sachs said: "The current account deficit remains modest and has been on a steady improving trend driven by rising non-oil trade surpluses, in turn driven by a competitive exchange rate and very weak domestic demand, and rising workers' remittances.”

The remittances mainly originate from Mexican workers based in the U.S., and climbed from $7.852 billion in the first quarter, to $9.403 billion in the second quarter. This also follows the $9.058 registered a year earlier.