November 25, 2019 / 7:26 PM / 13 days ago

UPDATE 2-Mexico posts current account surplus for second quarter in a row

(Adds comments from economist, background)

MEXICO CITY, Nov 25 (Reuters) - Mexico posted a current account surplus of $2.013 billion in the July-September period, running a surfeit for the second quarter in a row, data from the central bank showed on Monday.

The surplus was equivalent to 0.7% percent of gross domestic product (GDP), less than in the second quarter, the data showed.

In the April-June period, Mexico ran up a current account surplus of $4.52 billion, after posting a deficit of more than $8 billion in the first quarter, revised central bank data show.

“The biggest takeaway from the data is that the weakness of the economy is feeding through into a fall in imports, which is narrowing the current account deficit,” said Edward Glossop, Latin America economist at Capital Economics.

Mexico’s economy entered a mild recession during the first half of 2019 and was flat in the third quarter, revised data from the national statistics agency showed earlier.

Goldman Sachs economist Alberto Ramos said in a note to clients the bank expected Mexico’s current account deficit to narrow to 0.4% of GDP in 2019, from 1.8% of GDP in 2018, driven by a mounting non-oil trade surplus and higher remittances.

The current account is a broader measure of a country’s foreign transactions encompassing trade, services and financial flows, including interest payments and income transfers. (Reporting by Dave Graham and Anthony Esposito; Editing by Chizu Nomiyama and Diane Craft)

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