Mexico: Mexico trade deficit deteriorates in July
July 26, 2016
In July, the trade deficit totaled USD 1.8 billion, which represented a substantial deterioration over the USD 524 million deficit in June but was a touch narrower than the USD 1.3 billion deficit the markets had expected. In year-on-year terms, the trade shortfall was smaller than the USD 2.4 billion registered in July last year. With this result, the 12-month rolling shortfall came in at USD 17.0 billion in July (June: USD 17.6 billion deficit) and marked a third consecutive month of improvement.
The widening of the trade deficit in July reflected a sharp contraction in exports. Mexico’s overseas sales decreased 8.9% in year-on-year terms in July, which marked a faster contraction than the 5.4% drop observed in June. Imports fell 9.9% annually, which marked a deterioration over the 6.1% drop observed in June.
Author: Ricardo Aceves, Senior Economist