Mexico's Trade Deficit Increases to $4.868 Billion in August

07:33 27/09/2024 - PesoMXN.com

In August 2024, the Mexican trade balance reported a deficit of $4.868 billion. This figure represents a significant increase compared to the deficit of only $72 million recorded in the same month of 2023, according to Inegi.

For the period from January to August of this year, the accumulated deficit totals $10.438 billion, higher than the $8.428 billion during the same period last year. In August, total exports reached $51.915 billion, of which $49.666 billion were non-oil exports and $2.249 billion were oil exports. Exports showed a year-over-year decline of 1%, impacted by a drop of 26.6% in oil product exports. Non-oil exports only grew by 0.6%. Exports to the United States increased by 2.2% compared to last year, while those directed to the rest of the world fell by 7.7%. Within manufactured exports, the largest increases were seen in machinery and equipment for various industries, which rose by 15.5%; metallurgical products, up 4.2%; professional and scientific equipment, up 4.1%; and food, beverages, and tobacco, which saw a 3.3% increase. However, exports of automotive products fell by 3.3% year-over-year, with declines of 0.7% in sales to the United States and 17.4% to other markets. Regarding imports, their value reached $56.784 billion in August, showing an annual growth of 5.7%. This increase in imports is due to an 8.8% rise in non-oil imports, while oil imports saw a drop of 26%. By product type, imports of intermediate goods went up by 8.2%, while consumer goods decreased by 1.3%, and capital goods fell by 2.6%.

As a final comment, the sustained growth in imports can be viewed as a sign of robust domestic demand, but this deficit also raises concerns about long-term economic sustainability. It is crucial to implement effective strategies to strengthen exports and reduce dependence on imported products to achieve a healthy balance in the trade balance.