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Weekly Report - 27 February 2020 (WR-20-08)

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TRACKING TRENDS

MEXICO | Current account deficit narrows as economy slumps. Mexico registered a current account deficit of just US$2.44bn in 2019, down 89% on the US$23.00bn deficit in 2018, according to figures released by the Banco de México (Banxico) on 25 February. The 2019 current account deficit equates to 0.2% of GDP, the lowest figure as a percentage of GDP recorded in Mexico since 1987.

The decline in the current account deficit owes to the domestic economic slowdown. The national statistics institute (Inegi) confirmed on 25 February that GDP contracted by 0.1% in 2019, the same as the preliminary figure it released on 30 January.

Imports were down significantly from US$464.3bn in 2018 to US$455.3bn in 2019. The trade war between the US and China also allowed Mexico to become the main trade partner of the US as exports rose to US$461.bn from US$450.7bn the previous year.