In the midst of a challenging global economic landscape, Mexico continues to showcase its strength in the realm of exports, largely owing to the dynamism of the automotive sector. Preliminary data released by the National Institute of Statistics and Geography (INEGI) reveal a double-digit annual growth in automotive sector exports, fueling a robust year-over-year increase in Mexico’s total export value this year.
The value of exports saw a 3.8% annual increase in both August and the first eight months of the year. It’s worth noting that non-oil exports saw a rise of 4.3% last month and 5.8% between January and August.
During the last month, Mexico’s total exports reached a value of $52.36 billion, and between January and August, they amassed an impressive figure of $391.87 billion. Here, the manufacturing industry, including the automotive sector, significantly contributed to these achievements.
Manufacturing sector exports amounted to $47.15 billion last month and $348.95 billion in the first eight months of 2023, encompassing about 90% of the total value of Mexican exports in these respective periods. Annually, the value of manufacturing exports rose by 4.3% in August and 6% in the first eight months of the year.
Notably, the annual growth in the value of automotive exports was even more remarkable, with an 11% increase last month and a staggering 16.1% increase between January and August.
On another note, agricultural exports, including top earners like avocados and berries, experienced a 2.9% increase in the first eight months of the year, surpassing the $15 billion mark. Meanwhile, mining sector exports grew by 4.9%, reaching $6.35 billion.
Over 83% of non-oil export revenue came from shipping products to the United States, solidifying Mexico as the United States’ primary trading partner during the first six months of the year.
However, in contrast, the value of oil exports saw a 22% annual decline between January and August, amounting to $21.53 billion. This phenomenon is tied to Mexico’s goal of achieving energy self-sufficiency by 2024, opting to keep more crude for domestic processing rather than exporting it.
Regarding imports, preliminary data indicates a 4.3% annual decrease last month and a 0.5% decrease in the first eight months of the year. Imports were valued at $53.73 billion in August and $400.48 billion between January and that month, leaving Mexico with trade deficits in both periods.
Mexico’s deficit was $1.37 billion last month, a 75.9% reduction compared to that recorded in August last year, while its January-August deficit was $8.6 billion, a 65.2% reduction compared to that for the same period of 2022.
The majority of Mexico’s import spending was on intermediate goods, products used as inputs in the production of other goods. The value of imports of intermediate goods was $305.63 billion in the first eight months of the year, a 3.8% decline compared to the same period of 2022.
Imports of consumer goods rose 5.9% to $57.1 billion, while oil imports declined 26.8% to $12.93 billion. Mexico spent $37.74 billion on capital goods such as machinery, tools, and heavy equipment in the first eight months of the year, a 22.5% increase compared to 2022.
In conclusion, Mexico continues to demonstrate its ability to sustain steady growth in exports, with the automotive sector being a key driver of this momentum. With a clear strategy towards energy self-sufficiency and efficient management of its imports, Mexico aims to maintain its position as a key player in international trade and continue contributing to economic growth on both a national and global scale.
