Mexico Trade Gap Widens Strongly in July

Mexico recorded a trade deficit of USD 2889 million in July of 2018 from a USD 1531 million a year earlier and compared with market expectations of a USD 250 million shortfall. Imports jumped 17.6 percent and exports rose at a slower 14.2 percent.
INEGI Luisa Carvalho | 8/27/2018 2:08:05 PM
Year-on-year, imports jumped 17.6 percent to USD 39,610 million in July of 2018. Non-oil purchases increased 13.6 percent to USD 34,696 million, driven by higher purchases of intermediate goods (16.5 percent); capital goods (23.5 percent) and consumer goods (19.7 percent). Oil imports surged 56.8 percent to USD 4,914 million.

Exports advanced at a slower 14.2 percent to USD 36,721 million, with non-oil sales, which accounted for around 93 percent of total exports, rising 12.9 percent to USD 34,117 million. Shipments increased for manufactured products (13.1 percent), especially steel products (38 percent); automotive products (16.4 percent); food, beverages and tobacco (14.8 percent); electrical and electronic equipment and appliances (9.7 percent) and machinery and special equipment for diverse industries (9.4 percent). Meantime, sales of agricultural goods went up (4.0 percent), due to rises in sales of fish, crustaceans and mollusks (56.2 percent); fruits and edible fruits (48 percent); pepper (24.6 percent); cattle (21.4 percent) and tomato (18.7 percent). In addition, shipments were up for mining products (19.9 percent).

Oil exports grew 34.2 percent to USD 2,604 million in July 2018. Mexico exported 1,156 million barrels a day, below the 1,255 million recorded in the corresponding month of 2017. Crude oil prices in turn were up to USD 66.26 a barrel, USD 1.66 million more than in July of 2017.

Non-oil dispatches to the US, which represented more than 80 percent of total sales, went up 12.8 percent, mainly due to exports of autos (17.1 percent) and other products (10.8 percent). Exports to the rest of the world grew at a faster 13.3 percent, boosted by sales of other products (13.4 percent) and autos (13.0 percent).

On a seasonally adjusted monthly basis, the trade deficit narrowed to USD 1,692 million from USD 1,809 million, as exports increased 0.13 percent to USD 36,860 million while imports dropped 0.18 percent to USD 38,552 million.

Mexico Trade Gap Widens Strongly in July