Mexico | The current account figure confirms economic weakness in 1Q20

Summary

The current account deficit decreased by USD 10.2 billion in the first quarter of 2020 vs. the same period of last year, mainly due to the trade balance on non-oil goods posting a higher surplus.

Key points

• Key points:
• Annual drop of 20.1% in net foreign direct investment in 1Q20
• Our current account deficit forecast of 0.4% of GDP for 2020 implies that the country will enter a phase of significant economic contraction where goods imports will fall even more than exports of merchandises (-6.60% vs. -4.80%)

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