Friday, July 26, 2024

Mexico’s exports down 2.9% in April, but up over 4% this year

The value of Mexico’s exports declined 2.9% in April compared to the same month of 2022, the national statistics agency INEGI reported Thursday.

On a more positive note, the value of exports in the first four months of the year increased 4.2% to US $187.3 billion.

Mexican automotive factory
Automotive manufacturing exports brought in US $12.9 billion in April, which is a 2.7% decline compared to the same month last year. (Gob MX)

INEGI published preliminary data that showed that exports were worth US $46.22 billion last month, with over 90% of that amount coming from non-oil products.

The 2.9% decline came after the value of exports increased 3.2% annually in March to a record high of US $53.56 billion.

Preliminary data showed that the value of oil exports fell 32.8% last month to US $2.62 billion, while the decline in revenue generated by non-oil exports was just 0.2%.

The drop in the value of oil exports was largely caused by an annual decrease in Mexican crude prices. The newspaper El Economista reported that the average price for a barrel of export-grade Mexican crude in April was US $69.32, compared to US $102.05 in the same month last year.

Oil rig in Pacific Ocean
The value of oil exports has declined due to falling prices for exported Mexican crude. (Jaochainoi/Istock)

INEGI said that the value of non-oil exports sent to the United States actually increased 0.3% annually in April, but revenue from shipments of such products to the rest of the world declined 2.7%.

Mexico has benefited from strong demand for manufactured goods in the United States as well as the relocation of companies that make those products for sale in that market, a growing phenomenon known as nearshoring.

Gabriela Siller, director of economic analysis at the Mexican bank Banco Base, said that the decline in exports in April was expected due to to a slowing U.S. economy.

Manufactured goods brought in the lion’s share of Mexico’s export revenue last month. The value of non-automotive manufactured goods rose 0.8% to US $27.81 billion. Automotive exports were worth US $12.9 billion, but their value declined 2.7% annually.

Agricultural exports fell 2.9% to US $2.04 billion, while mining exports increased 18.1% to US $860 million.

Preliminary data also showed that imports to Mexico fell in April, dropping 3.3% to US $47.73 billion.

The newspaper El Financiero reported that it was the first decline in imports since February 2021 and “could be a sign of weakness in the internal economy.”

Non-oil imports actually increased 0.1% in April, but that was the weakest growth in over two years. Oil imports fell 27.5%, the biggest drop since January 2021.

INEGI’s data also showed that Mexico recorded a trade deficit of US $1.51 billion in April, and a deficit of US $6.3 billion in the first four months of the year.

With reports from El Economista and El Financiero 

Have something to say? Paid Subscribers get all access to make & read comments.
Héctor Melesio Cuén Ojeda, 68, was an accomplished businessman and influential politician in Sinaloa.

Héctor Melesio Cuén Ojeda, former mayor of Culiacán, is murdered

0
The federal deputy-elect and former mayor of Culiacán, Sinaloa, was attacked hours after leaders of the Sinaloa Cartel were detained in Texas.
A massive sinkhole opened up along Guadalajara's main boulevard on Thursday morning

Huge sinkhole causes chaos in Guadalajara

0
A 10-meter-wide sinkhole had traffic stopped throughout Guadalajara on Thursday, and authorities expect repairs to take at least 10 days.
Ismael El Mayo Zambada and Joaquin Guzmán López

Ismael ‘El Mayo’ Zambada and a son of ‘El Chapo’ arrested in Texas

0
The two Sinaloa Cartel leaders were arrested after flying into an airport near El Paso in a private plane.