The Day at a Glance | April 27 2021

The Top

*Mexican exports grew 4.3% during March (12.2% annual).

*The Central Bank of Japan revised its growth estimates upwards (4% 2021), but doesn`t expect to reach the inflationary target until 2024.

*The German government raised its growth estimates to 3.5%; it expects a greater boost from consumption expenditure once the pandemic passes.

*South Korean economy grows more than expected (1.6% 1Q21) and turns into the second economy to exceed its pre-pandemic size.

Economic environment

INEGI figures confirmed a strong recovery in Mexico`s imports and exports one year after the pandemic`s start. Total exports recorded a 4.3% increase during March and 12.2% in the last 12 months and have been able to revert the contraction caused by the pandemic during 2020. Oil exports (70.8% annual) are the ones that have recovered the most as demand for energy normalizes; only automotive exports continue showing negative growth rates in the last year (-5.2%). Something that stands out is the fact that imports have also recorded a strong recovery with an 18.35% monthly upturn (10.58% in consumer products, 20.6% in intermediate goods and 8.9% in capital goods). With this, imports recorded a 31.4% growth rate and have successfully overcome the contraction caused by the pandemic. The faster increase in imports has led the trade balance to record a deficit of up to 2,906 million dollars in March, the first in 9 months and the largest since May of 2020.