Mexico: Trade balance shrinks despite higher oil exports
July 26, 2011
In June, the trade balance incurred a surplus of USD 108 million (May: USD 555 million surplus) according to preliminary data released by the statistics institute (INEGI) on 26 July. The reading was slightly below market expectations of a USD 263 million surplus but, nevertheless, marked the sixth consecutive month the trade balance remained positive. Exports slowed from a strong 25.4% rebound in May, following supply chain disruptions in the wake of the Japanese disaster, to a 21.6% annual expansion in June. The reading was entirely the result of a moderation in non-oil exports, which expanded 13.3% (May: +24.2% year-on-year). In contrast, oil exports skyrocketed to a 92.2% expansion (May: +32.1% yoy) amid both higher export volume and prices. Imports followed suit and decelerated from a 24.0% increase in May to a 19.6% expansion in June. The moderation in imports mainly reflected slower imports of intermediate goods, associated with the moderation in exports.