The Financial Express

Mexico's exports grows 2.3 per cent in 2019

| Updated: February 29, 2020 12:01:18

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File photo. (Collected) File photo. (Collected)

Mexico's exports grew 2.3 per cent in 2019 compared to the previous year, driven largely by an increase in manufactured goods to the United States, the National Statistics and Geography Institute (Inegi) said.

Imports, on the other hand, dropped by 1.9 per cent in 2019, pulled down by a 0.8-per cent decrease in the purchase of intermediate goods from abroad, according to the Inegi's merchandise trade balance report.

The resulting trade surplus of 5.82 billion US dollars for 2019 contrasted sharply with a trade deficit of 13.618 billion dollars registered in 2018, reports Xinhua.

Exports of manufactured goods grew 3.4 per cent last year, helping to compensate for a 15.1-per cent plunge in oil shipments, said the Inegi on Tuesday.

Non-oil exports to the United States rose by 4.7 per cent in 2019, but dipped 1.1 per cent to other markets, it said.

Separately, Mexico's Banorte financial group noted that Mexico has not seen an annual trade surplus since 2012.

However, "we believe that the figures, despite being positive for gross domestic product (GDP) in the fourth quarter of 2019, continue to suggest a still modest panorama for (economic) activity in the coming months," said Banorte.

Most growth forecasts for 2019 indicate zero expansion in GDP, with several experts even projecting a small contraction amid a slowing global economy.

Preliminary economic growth figures for 2019 are to be released on Thursday.

As Latin America's second largest economy after Brazil, Mexico could see a 0.8-1.8 per cent growth, according to the central Bank of Mexico.

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