Mexico’s current account posted a deficit of just over $ 4 billion in Q3

The Current Account registered a deficit of 4.070 million dollars in the third quarter of the year, after the surplus that reached between April and June, informed the Bank of Mexico. This balance in the current account for the third quarter of 2021 was caused by the significant annual decrease in the surplus of the non-oil merchandise balance that was partially offset by the dynamism that remittances have continued to show and by the increase in the surplus of the travel account.

According to Banxico, this photo of the external accounts also shows the effect of “global industrial production was also affected by the worsening of bottlenecks while the service sector moderated its recovery rate due to the rebound in infections. in several countries ”.

Information from Banco de México shows that the deficit represented 1.3% of the Gross domestic product (GDP), which contrasts with the surplus of 6.5% of GDP observed in the same period last year, in full rebound in economic activity.

The deficit result was derived from the combination of a deficit in the balance of goods and services for 13,220 million dollars; of a deficit in the primary income, by 4,415 million dollars and of a surplus in the balance of secondary income by 13,565 million dollars.

The Director of Economic Research at the Veracruz SAVER ThinkLab, Luis Pérez Lezama, explained that Mexico has been a structurally deficient economy, which depends on the purchase of intermediate inputs, machinery and equipment to produce. When losing purchasing power, we must give up those inputs that are required from abroad, he stated.

The researcher warned that given the economic performance, Mexico will see deeper deficits because there was no stimulus.

Leave a Comment