Mexico Trade Gap Narrows in July

Mexico’s trade deficit narrowed to USD 1117 million in July 2019 from USD 2870 million in the corresponding month of the previous year and compared with market expectations of a USD 460 million surplus. It was the smallest trade gap in ten months, as exports rose 7 percent over a year earlier and imports increased at a softer 2 percent. Considering the first seven months of the year, the country recorded a USD 2028 million surplus.

Exports went up 7 percent from a year ago to USD 39301 million in July. Non-oil exports jumped 8.6 percent, driven by higher sales of manufacturing (7.9 percent), namely machinery & equipment for industries (15.4 percent), automotive products (12.6 percent), food, alcoholic & beverages (9.8 percent), and professional & scientific equipment (8.3 percent). Also, sales of agricultural products advanced 30.7 percent, boosted by grapes & raisins (217.1 percent), fresh vegetables (115.1 percent), avocado (74.3 percent), pepper (35.6 percent) and garlic & onion (16.7 percent). In addition, sales of mining increased 6.7 percent. Oil exports dropped 14.1 percent. The country exported 1.079 million barrels of crude oil per day, lower than 1.156 million barrels a year earlier while the price was USD 58.61 per barrel, $7.73 below the price in July 2018.

Non-oil exports to the US rose 10.6 percent, as both auto sales (16 percent) and others (8 percent) increased. Sales to the rest of the world decreased 0.3 percent.

Imports advanced 2 percent to USD 40417 million, mostly due to higher purchases of intermediate goods (5 percent), as non oil (7.3 percent) while oil (-15.7 percent). In contrast, purchases of consumption goods (-0.7 percent), namely oil (-18.7 percent); and capital (-16.5 percent) declined. 

On a seasonally adjusted basis, Mexico trade surplus decreased to USD 653 million in July from USD 1459 million in June. Imports advanced 2.96 percent month-over-month while exports went up at a slower 1.09 percent.

Mexico Trade Gap Narrows in July

INEGI | Stefanie Moya |
8/27/2019 11:22:55 AM