Published on Wednesday, February 26, 2020 | Updated on Thursday, February 27, 2020

Mexico | Economic stagnation in 2019 affects current account and net FDI

Our forecast of 2.0% of GDP for the current account deficit implies that Mexico will enter a phase of economic recovery after a real GDP contraction of 0.1% in 2019. This forecast suggests that the country is not vulnerable to external shocks and that a share of the current account deficit could be financed with net FDI.

Key points

  • Key points:
  • Annual drop of 16.1% in net foreign direct investment in 2019
  • The current account deficit decreased by USD 20.6 billion in 2019 vs. 2018, mainly due to the trade balance on non-oil goods posting a higher surplus

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