Mexico: External sector signals weakness at the outset of Q2
May 25, 2015
The trade balance registered a USD 85 million deficit in April. The reading contrasted the USD 498 million surplus registered in the same month last year (March: USD 470 million surplus), but was broadly in line with the USD 102 million shortfall that markets had expected. In the 12 months up to April, the sum of the trade deficit totaled USD 4.3 billion, which represented the largest shortfall since September 2013.
The National Statistics Institute (INEGI) reported that exports totaled USD 33.0 billion in April, which represented a 3.2% year-on-year contraction (March: +2.7% yoy) compared to the USD 34.1 billion registered in April 2014. The contraction reflected a plunge in oil exports (-50.5% yoy), which was mitigated by an expansion in non-oil exports (+2.7% yoy), particularly manufacturing exports, which increased 3.2% annually.
Moreover, imports also totaled USD 33.0 billion in April, which was 1.6% lower (March: +4.3% yoy) than the USD 33.6 billion tallied in the same month last year.
Author: Ricardo Aceves, Senior Economist