The manufacturing industry represents almost 90% of Mexican exports during 2018
The manufacturing industry was responsible for almost 90% of total Mexican exports, 80% of which went to the United States. Exports directed to the rest of the world depleted.
During the first eight months of 2018, the value structure of Mexico’s merchandise exports was as follows: manufactured goods 87.8%, oil products 6.9%, agricultural goods 3.8%, and non-oil extractive products 1.5%, according to a report by the National Institute of Geography (Inegi).
In August 2018, Mexico’s merchandise exports was of US$39.5 billion, representing a 10.1% increase with respect to the same month of last year. Said rate was driven by oil exports, which linked 22 months of increases at an annual rate––8% increases in non-oil exports and 47.2% in the oil companies.
Within the non-oil exports, those directed to the United States reported an annual growth of 10%, and represent, so far this year, 80.4% of the total, leaving for the rest of the world 19.16%. The latter had an annual fall of 0.4%.
Within the exports directed to the United States, the automotive ones represent 27.7%.
Furthermore, Mexico’s commercial deficit amounted to US$2.59 billion during August, slightly higher than the deficit of US$2.58 billion observed in the same month of 2017. With this balance, for the first eight months of the year, the trade balance showed a deficit of US$10.029 million.
The oil deficit and the heavy dependence on imported intermediate and consumer goods will continue to be a drag on the trade balance, according to Invex, a financial institution that generates specialized solutions. However, it is expected that exports will be favored by the better dynamism of consumption in the U.S., the main destination of Mexican manufacturing.
Likewise, the principle of commercial agreement with the U.S. suggests the continuity of trade in the region and it reduces the uncertainty in the sector. In terms of domestic demand, the trend of non-oil imports suggests resilience in consumption.