The Day at a Glance | August 25 2021

The Top

*Growth in Mexico during the 2Q21 was confirmed at 1.5% (19.5% annual).

*ECB expects solid growth in Europe despite the Delta variant; it`s committed to its accommodative stance.

*Central Bank of China assures that the US faces risks that are more serious than inflation due to the difference between growth in monetary supply and GDP since the pandemic.

*Meishan terminal in the Ningbo Zhoushan port resumes operations after two weeks of being shut down because of a COVID19 outbreak.

*Delta variant will delay Japan`s economic recovery, according to the country`s central bank.

Economic environment

The Mexican economy`s recovery reached its peak of acceleration. According to figures made public by the INEGI, the Mexican economy expanded at a 1.5% rate during the 2Q21, reaching its fastest pace of acceleration after the pandemic. Quarter over quarter, the internal market was the one that recovered with greatest dynamism, after recording 2% growth in services because of the recovery and the reopening of sectors such as recreation (168%), temporary accommodation (160%), transportation (54.5%) and retail trade (39.4%). Industrial activities increased a mere 0.3% and primary activities improved 0.8%. For the first semester of 2021, the economy recorded 7.4% growth and is on its way to record 6% growth for the entire year. Nevertheless, it’s possible that the economy has reached its peak of acceleration during the second quarter of the year. Figures for June, the semester`s last month, showed a (-) 0.9% contraction, with decreases in all sectors, while the virus`s new wave threatens to slow down activities even more in the following months.