The Day at a Glance | December 7 2020

The Top

· China records historical trade surplus.

· Bipartisan group in the US will present a $908 billion dollar fiscal proposal today.

· Fixed investment in Mexico falls (-) 2.9% in September; consumption increased 2.2% in the same month.

· The United Kingdom warns that Brexit negotiations could collapse in the next few hours if the EU isn`t more flexible with its stance.

· Japan prepares new fiscal stimulus worth $706 billion dollars.

· Washington is preparing to impose sanctions on Chinese officials over their alleged role in Beijing`s disqualification of elected opposition legislators in Hong Kong.

Economic environment

In November, Chinese net exports recorded their greatest monthly growth in since 2018, which has taken the country`s trade surplus to a new historically, monthly high level. Global demand for goods related to the pandemic have boosted the growth seen in Chinese exports to a large extent as exports of medical equipment and electronics have led growth. This month has also brought orders due to Christmas holidays. Exports grew 21% at an annual rate during November while imports slowed down slightly and increased 4.7% annually. With this, the surplus reached $75 billion dollars in November and a combined $460 billion through the first eleven months of 2020. The trade surplus in the US also reached a monthly record at $37.4 billion dollars. The recovery in global demand has been positive for China`s manufacturing exports, which along with an acceleration in consumption and local investment help maintain a firm recovery in the world`s second largest economy. It`s estimated that the fast growth seen in exports could slow down in 2021 once the main economies of the world moderate their rate of recovery.