Mexico: Trade deficit widens to largest level since 2008
October 25, 2011
In September, the trade balance incurred a deficit of USD 1.8 billion, according to preliminary data released by the statistics institute (INEGI) on 25 October. The subdued print represents the widest deficit since December 2008, more than double the USD 806 million shortfall observed in August. In addition, the reading undershot market expectations that had the trade balance recording a USD 1.0 billion deficit. Exports continued to lose momentum, slowing from a 17.0% increase in August to a 13.7% rise in September, which represented the slowest pace since November 2009. Furthermore, both oil and non-oil exports slowed over the previous month. On the contrary, imports accelerated from a 16.9% increase in August to an 18.5% expansion in September. The healthy pace of growth was underpinned by higher imports of intermediate goods, but also of consumer goods, which suggests that the gradual recovery of the domestic sector continues.