The value of Mexico’s exports hit a record high in 2023, but the level of annual growth in revenue was much lower than in the previous two years.

Mexican exports were worth US $593.01 billion last year, a 2.6% increase compared to 2022, according to preliminary data published by the national statistics agency INEGI on Friday.

The 2.6% gain was well short of the 18.6% and 16.7% increases in export revenue recorded in 2021 and 2022, respectively. Those impressive figures came after the value of exports slumped 9.4% in 2020 as the COVID-19 pandemic and associated restrictions took a heavy toll on industry and the Mexican economy in general, which contracted 8.5% that year.

INEGI data shows that 89% of Mexico’s export revenue last year — $528.83 billion — came from manufactured goods. About 36% of that amount came from the export of automotive sector products including vehicles and parts, while 64% came from the shipment abroad of non-auto manufactured goods such as computers and machinery.

Auto export revenue increased 14.3% in annual terms to reach $188.9 billion, while the value of non-auto goods declined 1% to $339.9 billion.

Oil was Mexico’s second biggest export earner after manufactured goods in 2023, but the revenue it brought in — $33.21 billion — accounted for just 5.6% of the country’s overall export income. Revenue from oil declined 14.8% compared to 2022.

The value of agriculture exports — a category that includes beer and other alcoholic beverages — increased 2.8% to $21.78 billion last year, while mining export revenue rose 0.2% to $9.17 billion.

INEGI said that just over 83% of Mexico’s non-oil export revenue came from shipments sent to the United States. Mexico almost certainly overtook China last year to become the United States top trade partner.

At $598.47 billion, the value of Mexico’s imports was $5.46 billion higher than export revenue. Mexico’s trade deficit was 79.7% lower than in 2022, INEGI said.

With reports from El Economista