Mexico | Economic stagnation affects current account and net foreign direct investment

Summary

Our forecast that the current account deficit will be 0.1% of GDP in 2019 suggests that the country is not vulnerable to external shocks and that even such deficit could be comfortably financed with NFDI and remittances.

Key points

• Key points:
• Annual drop of 11.9% in net foreign direct investment during the January–September period of 2019
• The current account deficit decreased by USD 17.2 billion in January–September 2019 vs. the same nine-month period of the previous year, mainly due to the trade balance on non-oil goods posting a higher surplus

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