The Day at a Glance | March 27 2023

*Mexico’s trade balance recorded a deficit of -$1,844 million dollars in February.

*Kansas Fed services activity index fell to -4 points in March from a previous reading of 1 point in February, the third lowest reading since April 2020. 

*Kristalina Georgieva, managing director of the International Monetary Fund, said that risks to financial stability have increased, but added that measures taken by advanced economies have helped ease market concerns.

*Russian President, Vladimir Putin, said that Moscow plans to install tactical nuclear weapons in Belarus, which NATO has called dangerous and irresponsible.

Economic environment

According to INEGI, during February the trade balance registered a deficit of -$1,844 million dollars. This figure compares to a surplus of $1,286 million dollars recorded in February 2022. Merchandise exports fell -2.82% yoy in February to $44,934 million, as a result of a -1.76% yoy contraction in non-oil exports ($46,662 million) and -19.18% in oil exports ($2,272 million). The components that had the greatest impact on the non-oil side were manufacturing -2.16% yoy ($39,756 million) and automotive -7.93% yoy ($13,122 million). Crude oil exports slide -17.3% yoy ($1,865 million), partially offset by the growth of 11.49% in agricultural exports ($2,103 million). Imports grew 4.06% ($46.778 million), with growth in consumer goods (15.78% yoy) and capital goods (28.44% yoy), with balances of $6,274 million and $4,176 million, respectively. While intermediate goods, the largest component ($36,329 million), recorded an annual growth of 0.13%. Also, the oil balance recorded a deficit of $2,610 million (vs $1,513 million February 2022). Finally, in the first two months of the year, the trade balance accumulated a deficit of $5,969 million (19.58% higher than a year ago).