The Day at a Glance | April 27 2022

The Top

*Mexico`s exports decreased (-) 2.74% in March after extraordinary growth in February; at an annual pace, exports increased 20.9%.

*Russia blocks the supply of gas to Poland and Bulgaria until its paid with rubles; the price of gas in Europe increased 24%.

*Xi Jinping committed himself to increase infrastructure spending in order to recover economic growth in China.

*Lael Brainard was confirmed as FED Vice-Chair.

Economic environment

Trade balance figures in Mexico. Timely trade balance figures in Mexico made public by the INEGI this morning confirmed a slight contraction in exports during March (-2.74%), with a 3.93% setback in non-oil exports and a 15.15% increase in oil exports. The decrease in total exports was moderate after having recorded extraordinary growth in February – led by a recovery in automotive exports. At an annual rate, manufacturing exports logged a 19.9% rate of growth in March, with a 20.4% expansion in non-automotive exports (steelmaking products 43.6%; food, beverages and tobacco 27.4%; electrical and electronic equipment 14.8%) and 18.9% in automotive exports. Only extractive exports logged an annual contraction during the month (-5.7%). Data confirmed that exports remain as one of the most important growth drivers for the economy. Regarding imports, they increased 1.04% during the month (12.7% annual). The increase was led by consumer goods, which recorded a 37.4% annual rate of growth; and capital goods increased 13.3%. Intermediate goods imports increased 9.4% and were the only ones that became more moderate with respect to February. Lastly, a trade balance surplus worth 199 million dollars was logged during the month, but for the entirety of the 1Q22, a 4,795 million dollar deficit was recorded.