Mexico: Exports growth shows signs of weakening
November 24, 2010
In October, exports increased 19.8% year-on-year, which marked a deceleration compared to the 20.8% increase registered in September and thus confirmed the moderation in external demand, amid weaker economic activity in the United States. Despite the slowdown, exports continue to creep up towards pre-crisis levels, with the 3-month sum in exports reaching USD 78.8 billion in October, which is not far below the peak of USD 79.9 billion reached in July 2008 and well above the trough of USD 49.7 billion registered in March 2009. Imports accelerated to a 24.8% expansion in October (September: +18.5% year-on-year), driving imports to a total of USD 27.3 billion, corroborating the notion of a slow, but sustained recovery in the domestic sector. Finally, as a result of imports rising faster than exports, the trade balance fell further into the negative, posting a deficit USD 814 million.