Mexico: Trade balance shows better performance in February
March 28, 2017
Mexico's February trade data showed exports increasing 8.0% annually in February (January: +11.4% year-on-year), which pushed the value of Mexico’s overseas sales to USD 31.3 billion. The increase was faster than market expectations of a 7.5% expansion and reflected a 5.5% increase in non-oil exports—supported by the weakness of the peso—and a massive 69.0% increase in oil exports.
Imports registered a 2.8% year-on-year increase in February (January: +10.0 yoy), which undershot the 5.0% expansion the markets had expected. Imports totaled USD 30.6 billion, resulting in a USD 684 million trade surplus in February. February’s surplus contrasted the USD 783 million deficit observed in the same month of 2016 and came in above market expectations of an USD 800 million deficit.
The 12-month trailing trade deficit narrowed substantially to USD 11.7 billion in February, registering the smallest accumulated shortfall in 18 months. The accumulated trade shortfall had been narrowing almost uninterruptedly since May 2016.
Author: Ricardo Aceves, Senior Economist