Mexico: Mexico's overseas sales contract for fifth consecutive month

Mexico’s trade deficit totaled USD 1.6 billion in November. This result came in below the USD 1.0 billion registered in November 2014, but was better than the USD 2.2 billion shortfall the markets had expected.

The trade deficit in November drove the 12-month rolling shortfall to USD 13.3 billion (October: USD 12.7 billion deficit), which represented the highest deficit since August 2009. The widening of the accumulated trade deficit has been mainly driven by a continuous deterioration in the oil trade balance.

Mexico’s shipments abroad suffered another contraction in November. Overseas sales totaled USD 31.0 billion in November, which marked a 4.1% contraction in year-on-year terms. Although the drop was slower than October’s 7.4% decrease, it marked a fifth consecutive month of decline. Meanwhile, imports totaled USD 32.6 billion in November, which represented a 2.4% decrease on an annual basis.

Panelists surveyed for this month’s LatinFocus report expect exports to reach USD 119 billion in 2016, which will represent a 8.1% expansion compared to the previous year. Meanwhile, imports are expected to expand 8.4% and reach USD 422 billion. For 2017, the panel expects exports and imports to increase 6.9% and 6.4%, respectively.