Boost in Mexican exports lessens trade deficit to its lowest in three years

Boost in Mexican exports lessens trade deficit to its lowest in three years

Mexican exports ended 2017 with an annual increase of 9.5%, representing the most significant growth since 2011. Such rise contributed to reach the smallest trade deficit in three years as shipments of manufactured goods helped offset a widening gap in the country’s petroleum products trade.

The country ran up a US$ 157 million deficit in December, bringing the full-year 2017 trade deficit to US$ 10.88 billion, the lowest since 2014, the National Statistics Institute said today. December exports rose 7.9% to US$ 35.82 billion, and imports rose 8.4% to US$ 35.98 billion. Total 2017 exports rose to US$ 409.49 billion while imports increased 8.6% to US$ 420.37 billion.

Full year manufacturing shipments totaled US$ 364.48 billion, which represented an 8.5% increase, boosted in part by an 11.8% hike in automotive exports to US$ 126.67 billion, while the rest of manufactures saw a 6.8% growth to US$ 327.81 billion, after remaining two years in negative terrain.

Despite the depreciation of the exchange rate over the course of the year, purchases of consumer goods increased 10.4%, signaling the first hike after two years of declines. Imports of intermediate goods, important for its relation to the product process, increased by 9.0% at the end of the year.

Purchases of capital goods, which are relevant for being a “thermometer” of fixed investment spending in the country, expanded 3.2% at annual rate, after having fallen close to 4.0% in 2016.

MexicoNow

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