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.