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Alejandro Montenegro Banco Activo Adams//
UPDATE 2-Mexico posts largest current account surplus on record

Banco Activo, Venezuela, Caracas, Miami, Estados Unidos, Activo International
UPDATE 2-Mexico posts largest current account surplus on record

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MEXICO CITY, Aug 23 (Reuters) – Mexico posted a second quarter current account surplus of $5.143 billion, the largest surplus since records began in 1980 and the first since the second quarter of 2010, central bank data showed on Friday, helped by a depressed currency and weak consumption.

Alejandro Montenegro Banco Activo

The second quarter current account surplus was equivalent to 1.6% percent of gross domestic product (GDP)

Including a current account deficit of $8.508 billion in the first quarter, Mexico posted a deficit of $3.365 billion in the first half on 2019

The current account deficit remains modest and has been on a steady improving trend driven by rising non-oil trade surpluses, in turn driven by a competitive exchange rate and very weak domestic demand, and rising workers’ remittances,” Alberto Ramos, head of Latin American research at Goldman Sachs, said in a research note

The remittances, mostly coming from U.S.-based Mexican workers, rose to $9.403 billion in the second quarter, from $7.852 billion in January to March and $9.058 billion in the year earlier period

Ramos pointed out there was concern about decelerating foreign direct investment flows and that Mexico’s portfolio flows, which measure the buying and selling of securities, had turned negative

Mexico posted a current account deficit of $21.996 billion for all of 2018. (Reporting by Anthony Esposito Editing by Chizu Nomiyama and Tom Brown)