Mexican Current Account To Move Into Surplus On Trade Balance, Remittances

  • Mexico’s current account will swing into surplus in 2020 for the first time in decades, as exports outpace imports and remittances continue to surprise to the upside.
  • Fitch Solutions forecasts Mexico’s current account surplus will stand at 0.8% of GDP in 2020, up from -0.3% in 2019, before returning to a deficit of -1.3% in 2021 as import demand recovers.
  • There are a number of risks to Mexico’s external account stability, particularly if re-openings in the global economy are reversed or if uncertainty over Mexico’s outlook drives capital outflows.

(Source: Fitch Solutions)