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Economy / Mexico

No Improvement In External Account

May 2011 | Economic Analysis

BMI View: Not only does Mexico's Q111 balance of payments data support our view that the current account deficit is structural in nature, but it also reinforces our concerns that a painful withdrawal of short-term capital is on the cards if the authorities fail to act to stem rampant portfolio inflows. Mexico's Q111 balance of payments reading reinforces two of our core concerns about the country's external account stability:

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