Mexico Trade July 2018

Mexico

Mexico: Trade deficit almost doubles in July

August 27, 2018

Merchandise trade recorded a USD 2.9 billion deficit in July (June: USD 0.9 billion deficit), widening from the USD 1.5 billion shortfall registered in July 2017. The result came in below analysts’ expectations of a narrower USD 1.5 billion deficit.

The result came despite stronger export growth, with exports expanding a solid 14.2% year-on-year in July (June: +5.5% yoy). Import growth, however, also accelerated, driving the deterioration in the trade balance. Imports rose 17.6% annually, notable above June’s 8.0% increase. The rapid growth was chiefly due to a higher energy bill for the country, as petroleum imports rose by over 50.0%.

As a result, the 12-month trailing trade deficit increased to USD 13.8 billion in July from USD 12.4 billion in June, considerably wider than the USD 8.8 billion deficit recorded in July 2017.

Panelists surveyed for this month’s LatinFocus report expect exports to reach USD 442 billion in 2018, which would represent a 7.9% expansion compared to the previous year. Meanwhile, imports are expected to grow 7.5% and reach USD 452 billion. For 2019, the panel expects exports to expand 5.9% and imports to expand 6.3%.


Author: Angela Bouzanis, Lead Economist

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Mexico Trade Chart


Mexico Trade12m July 2018

Note: 12-month sum of trade balance in USD billion and annual variation of the 12-month sum of exports and imports in %.
Source: Mexico National Statistics Institute (INEGI)


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