Mexico: Trade balance turns negative in April
June 10, 2013
In April, the trade balance recorded a deficit of USD 1.2 billion. The print contrasts both the USD 419 million surplus tallied in the same month last year and market expectations of a USD 190 million surplus. Building on the subdued reading, the moving 12-month sum of the trade balance dropped from a USD 2.7 billion shortfall in March to a USD 4.4 billion deficit in April.
The trade deficit reflects a vigorous rebound in imports, which swung from a 2.3% decline in March to an 11.8% expansion. All three consumer, intermediate and capital goods recovered in April. As a result, the moving 12-month sum of imports edged up from a 3.7% increase in March to a 3.8% rise.
Meanwhile, exports recovered from a 1.3% drop in March to a 6.3% increase in April. Both oil and non-oil exports fared batter compared to the previous month, with shipments of mining products expanding a robust 51.6% over the same month last year. Despite the positive reading, in the 12 months up to April exports decelerated to a 3.1% expansion, from the 3.7% rise seen in the 12 months up to March.
LatinFocus Consensus Forecast panellists expect export growth accelerating in the months ahead and reaching a 6.1% expansion and imports rising a stronger 7.6%. For next year, the panel expects both exports and imports to accelerate, growing 8.2% and 8.8% respectively.