Mexico: Merchandise exports decline at softer pace in July
August 27, 2020
Merchandise exports dropped 8.9% on annual basis in July, less severely than June’s 12.8% decline. July’s moderation was mainly driven by a softer fall in sales of manufactures, primarily those linked to the auto industry. In contrast, exports of oil plummeted at a sharper rate while those of agricultural products swung to contraction compared to June.
Imports, on the other hand, shrank 26.1% over the same month of 2019 in July, more severely than June’s 22.2% plunge. The sharper downturn largely reflected steeper falls in the purchase of intermediate and capital goods.
Meanwhile, the merchandise trade balance recorded a surplus of USD 5.8 billion in July, contrasting the USD 1.3 billion deficit logged in the same month of 2019. As a result, the 12-month trailing merchandise trade balance surged to a USD 11.9 billion surplus in July from a USD 4.8 billion surplus in June.
Author: Javier Colato, Economist