Mexico: Trade deficit widens due to contraction in exports
August 27, 2015
Mexico’s trade deficit totaled USD 2.3 billion in July, which came in below the USD 1.0 billion trade shortfall registered in the same month last year. July’s deficit was also larger than the USD 1.3 billion the markets had expected. As a result of the monthly reading, the accumulated trade deficit in the 12 months up to July was USD 7.9 billion, which is the largest shortfall in over five years.
Looking at the headline numbers, exports totaled USD 32.8 billion in July, which marked a 2.6% contraction in annual terms. According to the National Statistics Institute, the monthly contraction stemmed from a 36.8% contraction in oil exports, while non-oil exports, in particular of manufactured goods, expanded 1.3%.
On the other side of the balance, imports totaled USD 35.1 billion in July, which were above the USD 34.7 billion observed in the same month last year and marked a 1.1% annual expansion. July’s increase in imports marked a slowdown compared to the 4.7% expansion tallied in June.
Author: Ricardo Aceves, Senior Economist