The US imported more from Mexico than from China in 2023, the first time in two decades

For the first time in 20 years, USA imported more goods and services from Mexico than from Chinaaccording to official data published this Wednesday, which indicates that the US deficit in its foreign trade in goods and services closed 2023 with a drop of 18.7%.

The pandemic and the trade tensions between the two in recent years, which President Joe Biden and his Chinese counterpart Xi Jinping are currently trying to leave behind, are beginning to be reflected in the trade balance between both countries.

Figures from the Bureau of Economic Analysis (BEA) indicate that the deficit with China decreased by US$102.9 billion to US$279.4 billion in 2023.

There was a decrease in exports of US$6.2 billion to US$147.8 billion and a decrease in imports of US$109.1 billion to US$427.2 billion.

Meanwhile, the deficit with Mexico increased by 21.9 billion to 152.4 billion in 2023. Exports decreased by 1.1 billion to 323.2 billion and imports increased by 20.8 billion to 475.6 billion.

This is the first time in two decades that the number of imports of goods and services since Mexico surpasses that of China.

According to BEA figures, the US deficit in its foreign trade in goods and services closed 2023 with a drop of 18.7% compared to the end of 2022, reaching US$ 177.8 billion.

Exports increased 1.2%, 35,000 million, while imports fell 3.6%, 142,700 million.

At the end of 2023, the deficit in goods and services stood at US$ 773.4 billion, US$ 177.8 billion less than the US$ 951.2 billion in 2022.

Exports were US$3,053,500 million, US$35,000 million more than in 2022.

Imports were US$3,826,900 million, US$142,700 million less than in 2022.

The goods and services deficit was 2.8% of gross domestic product in current dollars in 2023, up from 3.7% in 2022.

The decrease in the goods and services deficit in 2023 reflected a decrease in the goods deficit of 10.3% to US$ 1,061,700 million and an increase in the services surplus of 24.3% to US$ 288,200 million.

By sectors, exports of industrial supplies and materials decreased US$ 102.8 billion; food, feed and beverages decreased US$ 17.4 billion; capital goods increased US$28.5 billion; motor vehicles, spare parts and engines increased US$19.3 billion and consumer goods increased US$14.7 billion.

Services exports increased US$74.2 billion to US$1,002.8 billion in 2023 with increases in travel of US$38.3 billion, financial services (US$7.4 billion), transportation (US$7.3 billion) and telecommunications, computing and information services (US$ 7.1 billion).

As for the imports, industrial supplies and materials decreased by US$ 130.8 billion; consumer goods decreased US$ 80.7 billion; pharmaceutical preparations increased US$ 13.6 billion and vehicles, spare parts and automotive engines increased US$ 59.5 billion.

Services imports increased US$17.8 billion to US$714.5 billion in 2023. Travel increased US$34.5 billion and transportation decreased US$14.7 billion.

?Data referring exclusively to the month of December show that the foreign trade deficit rose 0.5% to reach US$62.2 billion. This is 300 million more than the 61.9 billion in November, after revising the figure.

December exports were US$258.2 billion, US$3.9 billion more than November exports, an increase of 1.5%.

December imports were US$320.4 billion, US$4.2 billion more than November imports, an increase of 1.3%.

On the three-month average, a measure used by economists to determine trends, the average goods and services deficit rose $500 million to $62.7 billion during the three months ending in December.