Exports of Mexico totaled 187,307.9 million dollars in the first four months of 2023, a year-on-year increase of 4.2%, reported Inegi.
However, there was a contrast: external oil sales decreased 20.3%, to 10,182.2 billion dollars, and non-oil shipments increased 6.1%, to 177,125.7 million.
The Mexican economy depends on foreign trade with other economies, especially the United States, as well as China, Canada and some Latin American countries.
Mexico is an emerging market and exhibits significantly higher volatility from time to time compared to developed markets.
In particular, Mexican agricultural exports amounted to 8,328.6 million dollars from January to April of this year, an increase of 3.9% at an annual rate.
At the same time, non-oil extractive foreign sales amounted to 3,379.1 million dollars, that is, 7.2% higher, in the same comparative.
Finally, manufacturing exports grew 6.2% year-on-year to 165,417.9 million dollars.
Mexico depends, among other things, on the U.S. economy and any change in the price or demand for Mexican exports can have an adverse impact on the Mexican economy.
Within manufacturing exports, automotive exports advanced 12.2% to 56,053.1 million dollars, and non-automotive exports increased 3.4% to 109,364.8 million dollars.
Exports of Mexico
Economic conditions in Mexico have become increasingly correlated with economic conditions in the United States as a result of the North American Free Trade Agreement (NAFTA, in effect since January 1994) and, subsequently, the Mexico-U.S.-Canada Agreement (USMCA, NAFTA’s replacement in effect since July 2020), which have induced greater economic activity between the two countries and increased remittances from Mexican immigrants working in the United States to Mexican residents.
Annually, as of 2022, about 81% of Mexico’s total exports are purchased by the United States, the country with the largest share of trade with Mexico.
According to the timely estimate of GDP as of the first quarter of 2023, economic activity registered an annual growth of 3.9% and, with seasonally adjusted figures, increased 1.1% quarterly, up from the previous quarter of 0.5%.
With these results, according to data from Banco de México, economic activity grew for the sixth consecutive quarter.
In particular, with respect to the previous quarter and with seasonally adjusted figures, secondary activities grew 0.7 percent and tertiary activities 1.5 percent, while agricultural activities fell 3.2 percent.
