Mexico economy: Quick View – Sharp July trade deficit erases June surplus
Import spending outpaced export growth for the fourth time this year. Mexico’s accumulated trade deficit has widened to reach US$3.3bn, the largest in over five years.
In July, Mexico’s trade balance recorded a deficit of over US$1.4 bn, compared with a surplus of over US$800m in June (and a US$400m deficit in the same month in 2012). In seasonally adjusted terms, the deficit of US$366m in July was similar in scope to the deficit of over US$400m recorded in June.
Year-on-year export data showed an annual increase of 6.3% in July this year, which is derived from increases of 13.3% in oil exports and of 5.3% in non-oil products, including manufacturing products (5.6% growth) and mining exports (9.5% growth). This is consistent with signs of an ongoing economic recovery in the US. However, exports of farming and fishing products have fallen by 6.3% compared with 2012. Meanwhile, import spending growth has continued, with an increase of 9.2% in non-oil imports, including a 15.6% rise in consumer goods, and an 8.4% rise in intermediate goods. The growth in imports suggests that domestic economic activity could be gaining strength in spite of an increasingly fragile export sector in Mexico.
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