Mexico: Trade deficit almost doubles in July
Merchandise trade recorded a USD 2.9 billion deficit in July (June: USD 0.9 billion deficit), widening from the USD 1.5 billion shortfall registered in July 2017. The result came in below analysts’ expectations of a narrower USD 1.5 billion deficit.
The result came despite stronger export growth, with exports expanding a solid 14.2% year-on-year in July (June: +5.5% yoy). Import growth, however, also accelerated, driving the deterioration in the trade balance. Imports rose 17.6% annually, notable above June’s 8.0% increase. The rapid growth was chiefly due to a higher energy bill for the country, as petroleum imports rose by over 50.0%.
As a result, the 12-month trailing trade deficit increased to USD 13.8 billion in July from USD 12.4 billion in June, considerably wider than the USD 8.8 billion deficit recorded in July 2017.