Mexico: Merchandise exports fall less severely in August
September 28, 2020
Merchandise exports declined 7.7% on an annual basis in August, less severely than July’s 8.9% drop. August’s more moderate contraction largely reflected softer falls in exports of oil and agricultural products. In contrast, sales of manufactures, particularly those tied to the auto industry, decreased at a quicker pace compared to July.
Imports, similarly, shrank 22.2% over the same month in August, after plunging 26.1% in July. The less severe downturn was mainly driven by softer falls in the purchase of consumer and intermediate goods.
Meanwhile, the merchandise trade balance recorded a surplus of USD 6.1 billion in August, much larger than the USD 0.4 billion surplus logged in the same month of 2019. As a result, the 12-month trailing merchandise trade balance soared to a USD 17.6 billion surplus in August from a USD 11.9 billion surplus in July.
Author: Javier Colato, Economist