In the third quarter of 2023, Mexico experienced a significant shift in its current account, moving from a deficit to a surplus. Specifically, the country recorded a surplus of USD 2,628 million, a marked improvement from the deficit of USD 6,386 million seen in the same period last year. This change, however, was slightly below the market predictions, which anticipated a surplus of USD 2,725 million.
A closer look at the components of Mexico’s current account reveals a notable decrease in the goods deficit, which dropped to USD 3,737 million from USD 12,899 million in Q3 of 2022. This indicates a significant reduction in the gap between the country’s imports and exports of goods. In contrast, the primary income, which includes earnings on foreign investments and payments made to foreign investors, remained fairly consistent, totaling USD 4,772 million compared to USD 4,876 million in the previous year.
However, the services sector presented a different picture, with the deficit in services, including tourism and transport, expanding to USD 5,578 million from USD 3,992 million. On a more positive note, secondary income, which encompasses transfers like remittances, showed an increase, with the surplus rising to USD 16,715 million from USD 15,379 million.