Mexico May Trade Balance Swings to Surplus

Mexico’s trade balance shifted to a USD 1031 million surplus in May 2019 from a USD 1587 million deficit in the corresponding month of the previous year and beating market expectations of a USD 1.03 billion shortfall. Exports increased 6.7 percent year-on-year and imports rose at a softer 0.1 percent. Considering the first five months of the year, the country recorded a USD 584 million trade surplus.

Year-on-year, exports went up 6.7 percent to USD 41825 million in May. Non-oil exports jumped 7.7 percent, driven by higher sales of manufacturing (8 percent), namely automotive products (16 percent), machinery & equipment for industries (11.9 percent), food, alcoholic & beverages (10.7 percent), and professional & scientific equipment (5.7 percent). In addition, sales advanced for agricultural products (2.7 percent), of which fresh fruit (118.1 percent), pepper (20.1 percent), vegetables (19.1 percent), melon, watermelon & papaya (15.3 percent) and avocado (11.5 percent); and mining (7.5 percent). On the other hand, oil exports dropped 6.9 percent. The country exported 1.205 million barrels of crude oil per day, higher than 1.023 million barrels a year ago while the price was USD 61.96 per barrel, $0.77 below the price in May 2018.

Non-oil exports to the US rose 8.5 percent, driven by auto sales (19.8 percent) and others (3.5 percent). Sales to the rest of the world went up 4.1 percent.

Imports increased 0.1 percent to USD 40795 million, boosted by higher purchases of consumption goods (1.1 percent), mostly gasoline, butane & propane gas (8.9 percent); and intermediate goods (0.3 percent), in particular non-oil (0.4 percent). Meanwhile, purchases of capital goods declined 3 percent.

On a seasonally adjusted basis, Mexico trade surplus widened to USD 984 million in May from USD 157 million in April. Exports advanced 3.94 percent month-over-month and imports rose 1.81 percent.

Mexico May Trade Balance Swings to Surplus

INEGI | Stefanie Moya |
6/27/2019 1:28:06 PM