UPDATE 1-Mexican central bank flags possible 2019 contraction, denies recession

recession@ (Adds quote on recession)

MEXICO CITY, Nov 27 (Reuters) - Mexico's central bank on Wednesday cut its forecast for economic growth, flagging that Latin America's second biggest economy could end the year with a slight contraction but denying it was currently in recession.

In its quarterly economic report, the Banco de Mexico lowered its growth outlook for this year to between -0.2% and

+0.2%. It also lowered its forecast for 2020 growth.

Central Bank Governor Alejandro Diaz de Leon said economic conditions in the country did not meet the U.S. Bureau of Economic Research definition of a recession as a significant decline in economic activity spread across the economy.

"Clearly this is a condition that does not apply today in the Mexican economy," he said during the presentation of the report.

Mexico entered a mild recession in the first half of 2019, according to the widely-used measure of two successive quarters of economic contraction. (Reporting by Anthony Esposito; editing by Frank Jack Daniel and Rosalba O'Brien)