Mexico Trade Gap Widens 45% YoY in August

Mexico posted a trade deficit of USD 2732 million in August of 2017 compared with a USD 1884 million shortfall in the same month of the previous year, well above market expectations of a USD 1498 million gap. Exports rose 10.3 percent from a year ago to USD 35.8 billion and imports advanced at a faster 12.2 percent to USD 38.5 billion, the highest value on record. Considering the January to August period, the trade deficit shrank 33.4 percent to USD 7.16 billion, as exports rose 10.1 percent and imports soared 8.2 percent.

Year-on-year, exports rose 10.3 percent to USD 35.78 billion in August of 2017, marking the tenth consecutive month of annual gain. Non-oil sales, which account for around 95 percent of total exports, increased 10.6 percent and exports of oil went up 4.1 percent. Within non-oil exports, sales of manufactured goods rose 10.7 percent, driven by exports of food, beverages and tobacco (20.7 percent); automotive products (15.6 percent); electronic goods and appliances (12.9 percent); professional and scientific equipment (11.4 percent) and special machinery and equipment for industries (9.1 percent). Also, sales advanced for agricultural and fisheries (4.1 percent), namely those of raw coffee beans (90.6 percent); fruits and edible fruits (51.9 percent); citrus (37 percent); mango (23.5 percent) and fresh vegetables (18.1 percent). Meantime, shipments of mining products jumped 19.2 percent, compared to a 14.5 percent rise in July.

Exports to the United States surged 9.3 percent, accounting for around 82 percent of total non-oil shipments. Auto sales to the US increased 10.5 percent and exports of other products advanced 8.6 percent. Sales to the rest of the world rose 16.9 percent, with autos jumping 44.9 percent and other products climbing 7 percent.

Imports advanced 12.2 percent to USD 38.51 billion, the highest value on record, driven by higher purchases of intermediate goods (12.9 percent), consumption goods (12 percent) and capital goods (7.2 percent).

On a seasonally adjusted basis, exports went up 1.96 percent to USD 34.23 billion, led by an increase of 2.43 percent in non-oil shipments while oil sales fell 6.39 percent. Imports grew at a faster 3.35 percent to USD 35.52 billion, with advances in both oil purchases (15.58 percent) and non-oil imports (2.13 percent), thus widening the trade deficit to USD 1283 million from USD 789 million in the previous period.

Mexico Trade Gap Widens 45% YoY in August

INEGI |Luisa Carvalho |
9/27/2017 2:30:48 PM