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Mexico posts largest trade surplus on record

Christian Fernsby |
Mexico’s trade balance shifted to a USD 2561 million surplus in June 2019 from a USD 899 million gap in the same month of the previous year and beating market forecasts of a USD 460 million surplus.

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It was the largest trade surplus on record, as exports rose 1.6 percent over a year earlier and imports dropped 7.8 percent. Considering the first half of the year, the country posted a USD 3145 million trade surplus.

Year-on-year, exports increased 1.2 percent to USD 37949 million in June. Non-oil exports advanced 2.8 percent, boosted by higher sales of manufacturing (2.9 percent), in particular machinery andequipment for industries (13 percent), food, alcoholic andbeverages (11.7 percent), automotive products (4.4 percent) and steel products (1.1 percent).

Additionally, sales of agricultural products rose 4.9 percent, namely frozen shrimp (137.8 percent), melon, watermelon andpapaya (73 percent), grapes andraisins (72.7 percent), fresh vegetables (24.7 percent) and peppers (19.6 percent). In contrast, sales of mining dropped 7.3 percent.

Oil exports declined 20.4 percent. The country exported 0.995 million barrels of crude oil per day, lower than 1.110 million barrels a year ago while the price was USD 58.33 per barrel, $6.26 below the price in June 2018.

Non-oil exports to the US went up 4.1 percent, as both auto sales (6.5 percent) and others (2.8 percent) increased. Sales to the rest of the world fell 2.5 percent.

Imports decreased 7.8 percent to USD 35388 million, mainly due to lower purchases of consumption goods (7.1 percent), of which non-oil (-5.7 percent) and gasoline, butane andpropane gas (-9.7 percent); intermediate (-6.2 percent), as both oil (-23.5 percent) and non-oil (-4.2 percent); and capital goods (-21.2 percent).

On a seasonally adjusted basis, Mexico trade surplus widened to USD 1459 million in June from USD 984 million in May.

Exports declined 3.76 percent month-over-month and imports dropped a faster 4.78 percent.

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