Mexico: Trade deficit widens notably in April
May 25, 2016
In April, the trade deficit totaled USD 2.1 billion, which marked a notable deterioration over the USD 87 million surplus registered in the previous month. A year-on-year comparison showed that April’s shortfall was wider than the USD 69 million deficit registered in the same month last year, which indicates that growth in exports continues to falter, while that of imports improved somewhat. The wider-than-expected trade shortfall—markets had expected a USD 570 million deficit—prompted the 12-month rolling deficit to widen to USD 18.5 billion, which is the largest trade deficit in more than two decades.
Exports contracted 7.8% annually in April, which followed a 7.9% decline in March and marked the 10th consecutive month of negative growth in Mexico’s overseas sales. Meanwhile, imports decreased 1.6% in April, which came in above the 6.7% contraction registered in March. March’s result had represented the sharpest contraction since October 2009.
Author: Ricardo Aceves, Senior Economist