Mexico: Export growth slows in December
January 25, 2011
In December, the trade balance incurred a USD 219 million deficit (November: USD 105 million deficit), based on preliminary figures released by the statistics institute (INEGI) on 25 January, which will be revised on 9 February. The reading overshot market expectations of a USD 350 million deficit. Growth in exports continues to moderate, as the favourable base effect reflecting depressed trade flows in the wake of the recession is fading. In December, exports expanded 16.4% over the same month the previous year to reach USD 26.9 billion, which was well below November's 25.9% expansion. However, exports remain strong and, in fact, in the moving three-month sum reached USD 81.6 billion, which exceeded, for a second consecutive month, the USD 79.9 billion peak recorded in the April-July 2008 period. In the same vein, imports continued to recover, growing an annual 17.0% (November: +25.6% year-on-year) in December to total USD 27.1 billion. The strong reading suggests that the recovery in domestic demand remained on track at the end of 2010.