Mexico Posts Largest Trade Gap on Record for May

Mexico recorded a trade deficit of USD 1587.0 million in May of 2018, compared with USD 1203.1 million a year ago and worse than market expectations of a USD 665 million shortfall. It was the largest trade gap for a May month so far. Imports jumped 11.5 percent to a record high, as rising oil prices pushed up the value of oil purchases while exports grew at a softer 10.9 percent.
INEGI | Luisa Carvalho | 6/27/2018 3:32:51 PM
Year-on-year, imports surged 11.5 percent to a record high of USD 40,764 million in May 2018. Oil purchases soared 51.3 percent to USD 4,458 million; and non-oil imports advanced 8.1 percent to USD 36,306 million, boosted by consumer goods (12.6 percent), intermediate goods (11.7 percent) and capital goods (9.1 percent).

On the other hand, exports rose at a softer 10.9 percent to USD 39,177 million. Non-oil sales, which represented around 93 percent of total exports, grew 7.8 percent to USD 36,346 million. Shipments went up for manufactured products (7.8 percent), namely steel products (39.9 percent); machinery and special equipment for diverse industries (15.1 percent); professional and scientific equipment (9.6 percent); automotive products (5.5 percent) and electrical and electronic equipment and appliances (2.7 percent). In addition, sales of mining products rose 38.5 percent. Meanwhile, those for agricultural goods showed no growth, as increases registered in exports of citrus (60.4 percent); cucumber (41.6 percent); pepper (23.2 percent); mango (20.5 percent) and fruits and edible fruits (16.8 percent) were offset by declines in the ones of avocados (-41.5 percent) and fresh vegetables (-15.6 percent).

Oil sales rose 73.6 percent to USD 2,831 million in May 2018. Mexico exported 1.222 million barrels a day, above 0.958 million a year ago. Crude oil prices were up to USD 62.83 a barrel, USD 18.95 more than in May of 2017.

Non-oil dispatches to the US, which accounted for more than 80 percent of total sales, increased 6.5 percent, supported by exports of other products (8.9 percent) and autos (1.6 percent). Exports to the rest of the world advanced at a faster 13.9 percent, with sales of autos rising 25.9 percent and those of other products increasing 9.0 percent.

On a seasonally adjusted monthly basis, the trade deficit widened to USD 1368 million from USD 695 million, as imports grew at a faster 1.66 percent and exports went up 0.05 percent.

Mexico Posts Largest Trade Gap on Record for May