Mexico: Trade balance shows deficit due to surging imports
September 9, 2013
The trade balance ran up a USD 1.4 billion deficit in July (June: USD 856 million surplus). The reading was below both the USD 409 million shortfall observed in the same month last year and market expectations of a USD 550 million deficit.
The widening of the trade deficit in July reflects a 9.6% expansion in imports, which is a substantial acceleration compared to the 1.7% increase observed in June. Meanwhile, exports increased 6.3% annually, faster than the 2.5% expansion recorded in June.
LatinFocus Consensus Forecast panelists expect exports to increase 3.6% this year, while imports are expected to rise a stronger 5.0%. For 2014, the panel expects exports and imports to accelerate, growing 7.9% and 8.4% respectively.
Author: Ricardo Aceves, Senior Economist