Mexico Posts Smallest Trade Gap in Over 2 Years

Mexico’s trade deficit narrowed to USD 116 million in September 2019 from USD 301 million in the corresponding month of the previous year and compared with market expectations of a USD 245 million surplus. It was the smallest trade gap since June 2017, as imports dropped 1.8 percent over a year earlier while exports fell at a softer 1.3 percent. Considering the first nine months of the year, the country recorded a USD 2687 million surplus.

Imports declined 1.8 percent year-on-year to USD 37338 million in September, mainly due to lower purchases of consumption goods (-3.8 percent), namely oil (-23.1 percent); and capital (-13.5 percent). Meanwhile, imports of intermediate goods rose 0.2 percent, of which non oil (1.7 percent).

Exports went down 1.3 percent to USD 37222 million, as oil exports dropped 29.3 percent. The country exported 0.995 million barrels of crude oil per day, lower than 1.206 million barrels a year earlier while the price was USD 57.11 per barrel, $11.15 below the price in September 2018. On the other hand, non-oil exports went up 1 percent boosted by higher sales of manufacturing (0.8 percent), in particular food, alcoholic & beverages (16.1 percent), mining metallury (14.7 percent), professional & scientific equipment (7.2 percent), and machinery & equipment for industries (5.5 percent). Additionally, sales of agricultural products advanced 12.1 percent, driven by vegetables (42.9 percent), mango (38.6 percent), fruits /23.6 percent), avocado (21.2 percent), and pepper (14.7 percent).

Non-oil exports to the US increased 2.1 percent, as other goods rose (4.7 percent) while auto sales fell (-2.2 percent) Sales to the rest of the world went down 4 percent.

On a seasonally adjusted basis, Mexico trade surplus decreased to USD 449 million in September from USD 1690 million in August, as exports declined 5.26 percent while imports fell at a slower 2.39 percent.

Mexico Posts Smallest Trade Gap in Over 2 Years

INEGI | Stefanie Moya |
10/28/2019 12:23:34 PM