Mexico: Trade balance shows deficit after five months of surpluses
August 27, 2014
In July, the trade balance incurred a deficit of USD 980 million. The reading was below the USD 1.4 billion shortfall recorded in the same month last year but overshot the USD 810 million deficit the markets had expected. July’s result, however, marked the first trade deficit after five consecutive months in which the trade balance registered surplus. Moreover, in the 12 months up to July, the sum of the trade balance incurred a surplus of USD 1.0 billion.
July’s trade deficit reflected a slowdown in exports. Shipments abroad totaled USD 33.7 billion in July, which represented a 4.5% year-on-year increase and was weaker than the 7.7% expansion observed in June. Meanwhile, imports grew 3.1% over the same month last year, which pushed imports’ value to USD 34.7 billion in July. (June: +9.6% yoy).
Author: Ricardo Aceves, Senior Economist