Mexico Posts $206M Current Account Surplus in Q2 Amid Trade Rebound

Mexico recorded a current account surplus of $206 million in the second quarter of 2025, marking its first surplus since late 2024, driven by stronger goods trade and a narrowing services deficit. Non-oil exports outpaced imports, and remittances remained robust, exceeding $15 billion despite slowing compared to the previous year, while primary income deficits persisted due to foreign companies repatriating earnings. The trade surplus with the United States grew sharply this year, even amid new tariffs from Washington, as Mexico's exports rose faster than imports, resulting in a record trade gap favoring Mexico. Despite the positive trade balance, Mexico’s economic growth was modest at 0.7% for the quarter, with inflation remaining above the central bank’s target. The peso has stayed strong and public finances stabilized, but Mexico remains vulnerable due to its dependency on U.S. demand and remittances, with potential risks if global economic shocks intensify. Overall, Mexico’s external surplus signals resilience amidst global trade challenges, although the outlook remains fragile.