Mexico Posts Largest Trade Deficit on Record

Mexico recorded a USD 4.408 million trade gap in January of 2018 from a USD 3471 million a year ago and worse than market expectations of a USD 3353 million shortfall. It was the highest trade gap on record, as imports rose faster than exports, underpinned by higher oil purchases.
INEGI | Luisa Carvalho | 2/27/2018 3:49:22 PM
Year-on-year, imports jumped 14.1 percent to USD 35,138 million. Oil purchases grew 14.8 percent while non-oil imports rose 14.1 percent with biggest increases reported for primarily capital goods (18.8 percent); consumer goods (16.9 percent) and intermediate goods (13 percent).

Exports advanced at a slower 12.5 percent to USD 30,730 million, the lowest value in a year. Non-oil shipments, which accounted for more than 90 percent of total exports, rose 11.6 percent to USD 28,403 million. Sales jumped for mining products (60.7 percent) and agricultural goods (20.9 percent) such as avocados (60.8 percent); tomato (40.6 percent); citrus fruits (38.9 percent); fresh vegetables (16.7 percent) and strawberries (16.4 percent). Also, shipments advanced for manufactured products (10.5 percent) namely machinery and special equipment for diverse industries (23.8 percent), steel products (21.2 percent), professional and scientific equipment (15.2 percent), chemicals (14.9 percent) and vehicles (9 percent). 

Oil exports went up 24.1 percent to USD 2,327 million. Mexico exported 1.107 million barrels a day, above 1.085 million a year ago. Crude oil prices also rose to USD 58.08 a barrel, USD 3.94 more than in January of 2017.

Non-oil exports to the US, which accounted for over 80 percent of total shipments grew 10.1 percent as sales of autos was up 5.3 percent and other exports grew 12.5 percent.  Exports to the rest of the world soared 18.5 percent boosted by a 30.7 percent surge in shipments of autos while other sales increased 14.4 percent.

On a seasonally adjusted basis, exports fell 2 percent in January from December and imports declined 2.5 percent, thus shrinking the trade deficit to USD 1232 million from USD 1447 million.

Mexico Posts Largest Trade Deficit on Record