Mexico Trade Deficit Widens Sharply In May


Mexico posted a trade deficit of USD 1079.2 million in May of 2017 compared to a USD 442.1 million trade shortfall a year earlier and missing market expectations of a USD 1000 million surplus. It is the largest trade deficit for a May month since 2015, as exports rose 12.9 percent and imports advanced at a faster 14.7 percent.

Exports rose 12.9 percent year-on-year to USD 35.47 billion, following an upwardly revised 4.5 percent in April and marking the seventh straight annual gain. Non-oil sales, which account for 95 percent of total exports increased 13.8 percent while oil sales declined 3.5 percent.

Exports of manufactured products rose 12.9 percent, accounting for nearly 90 percent, driven by sales of food, beverages and tobacco (28.4 percent); equipment and electric and electronic apparatus (19.7 percent); special machinery and equipment for industries (16.8 percent); automotive products (13.8 percent) and professional and scientific equipment (11 percent). In addition, sales of agricultural and fisheries jumped 24.3 percent, mainly those of avocados (104.1 percent), cattle (77.9 percent), grapes and raisins (44.7 percent) and fresh vegetables (39.7 percent). Also, shipments of mining products surged 60.5 percent.

Exports to the United States grew 12.6 percent, accounting for more than 80 percent of total non-oil shipments. Auto sales rose 12.4 percent, accounting for more than 27 percent, and exports of other products advanced 12.6 percent. Sales to the rest of the world jumped 20.4 percent, with autos increasing 22 percent and other products by 19.7 percent.

Imports advanced at a faster 14.7 percent to USD 36.54 billion, following a 5 percent decrease in the previous month. Purchases were boosted by intermediate goods (15.9 percent), consumption goods (10.7 percent) and capital goods (11.1 percent).

On a seasonally adjusted basis, exports went up 0.74 percent to USD 33.21 billion, led by a 1.68 percent increase in non-oil sales while oil shipments fell 15.63 percent. Imports rose 2.91 percent to USD 33.94 billion, widening the trade deficit to USD 733 million.


INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
6/27/2017 2:15:31 PM