Mexico: Trade deficit widens in August
September 26, 2014
In August, the trade balance incurred a deficit of USD 1.1 billion. The reading was more than four times greater than the USD 225 million shortfall recorded in the same month last year and almost doubled the USD 600 million deficit the markets had expected. Moreover, August’s result marked the largest deficit since January of this year. In the 12 months up to August, the sum of the trade balance incurred a surplus of USD 1.0 billion.
August’s trade deficit reflected a second consecutive slowdown in exports. Shipments abroad totaled USD 33.4 billion in August, which represented a 2.1% year-on-year increase and was weaker than the 4.5% expansion observed in July. Meanwhile, imports grew 4.8% over the same month last year, which pushed imports’ value to USD 34.5 billion in August. (July: +3.1% yoy).
Author: Ricardo Aceves, Senior Economist