- Mexico: Imports and exports rose in March, anticipating disruptions; Unemployment rate remains low despite economic slowdown
MEXICO: IMPORTS AND EXPORTS ROSE IN MARCH, ANTICIPATING DISRUPTIONS
INEGI published trade balance data for March, which showed a surplus of $3.442 bn, up from $2.212 bn in February. The details highlight an annual increase in exports of 9.6% and imports of 7.1% (chart 1). Exports totaled $55.527 bn, of which $53.354 bn were non-oil exports (+9.7%), with manufacturing exports totaling $49.990 bn (+10.0%), and automotive exports registering an annual increase of 6.1%. Imports totaled $52.085 bn, with $49.108 bn being non-oil imports (+8.0%). Within these, intermediate goods rose by 9.7%, while imports of capital and consumer goods decreased by -1.3% and -1.1%, respectively. From January to March, the trade balance has a surplus of $1.096 bn. The increase in both imports and exports suggest that companies are anticipating more complex conditions due to the implementation of tariffs, with special concern in the autos and parts sector.
UNEMPLOYMENT RATE REMAINS LOW DESPITE ECONOMIC SLOWDOWN
In February, the unemployment rate dropped to 2.2% from the previous 2.5% (chart 2). Additionally, the participation rate increased to 59.3% from the previous 58.7%, equivalent to an active population of 61.08 million, of which 59.73 million are employed. Among those employed, the informality rate stood at 54.5%, while the underemployment rate rose to 6.6%, meaning 3.7 million people reported needing and being available to work more hours. These figures contrast with formal employment, which has remained weak in recent months, with slow job creation. Looking ahead, we believe the labour market could face less favourable conditions due to the weaker economy affected by increased uncertainty.
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