Mexico August Trade Balance Swings to Surplus

Mexico’s trade balance shifted to a USD 775 million surplus in August 2019 from a USD 2584 million deficit in the same month of the previous year and compared with market expectations of a USD 1304 million surplus. Exports increased 2.2 percent over a year earlier while imports dropped 5.9 percent. Considering the first eight months of the year, the country posted a USD 2804 million surplus.

Exports rose 2.2 percent year-on-year to USD 40430 million in August, as non-oil exports increased 4.6 percent driven by higher sales of manufacturing (3.7 percent), in particular automotive products (9.7 percent), mining metallury (7.2 percent), food, alcoholic & beverages (5.5 percent), professional & scientific equipment (3.2 percent), and machinery & equipment for industries (2.9 percent). In addition, sales of agricultural products jumped 35.6 percent, boosted by vegetables (160.5 percent), avocado (66 percent), onion & garlic (33.6 percent), pepper (27.4 percent) and mango (10.8 percent). Also, sales of mining went up 1.4 percent. Oil exports declined 29.1 percent. The country exported 1.082 million barrels of crude oil per day, lower than 1.181 million barrels a year earlier while the price was USD 50.37 per barrel, $13.79 below the price in August 2018.

Non-oil exports to the US advanced 4.1 percent, as both auto sales (8.4 percent) and others (1.8 percent) increased. Sales to the rest of the world rose 6.8 percent.

Imports fell 5.9 percent to USD 39655 million, due to lower purchases of intermediate goods (-3.7 percent), as both non oil (-1.8 percent) and oil (-21.4 percent); consumption goods (-11.9 percent), of which oil (-24.5 percent) and non-oil (-5.9); and capital (-14 percent). 

On a seasonally adjusted basis, Mexico trade surplus widened to USD 1690 million in August from USD 653 million in July, as exports went up 2.85 percent and imports increased at a softer 0.10 percent.

Mexico August Trade Balance Swings to Surplus

INEGI | Stefanie Moya |
9/27/2019 11:21:06 AM