Mexico’s Office for Economic Affairs will today release balance of trade figures for September. After recording a $400 million surplus
Mexico’s Office for Economic Affairs will today release balance of trade figures for September.
After recording a $400 million surplus in August 2019, Mexico reported a $6.12 billion trade surplus for August this year—an increase of 1530% and the largest Mexican surplus ever recorded. This occurred due to a 22% reduction in imports, from $39.7 billion to $30.86 billion. Meanwhile, exports only fell by 7.7% to $36.98 billion, with sales losses coming from oil and non-oil manufactured products.
This large surplus is predicted to fall within the next few months and settle at $1.3 billion within a year’s time. The nation’s economy continues to weather the effects of COVID-19, despite Mexico currently reporting the fourth most virus-related deaths in the world. With nearly half of the population living below the poverty line and one in five people unemployed due to the pandemic, future economic prospects are dim.
Expect President Lopez Obrador to face continued criticism for his opposition to any public stimulus relief, despite an economy predicted to contract by more than 10% this year. As his MRN party controls Congress, Lopez Obrador’s austerity policies are beginning to affect his public approval rating.
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