The Day at a Glance | February 13 2023

*The holding of government securities decreased 2.3% in January.

*Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, pointed out on Monday that the US economy could possibly avoid a recession.

*According to the University of Michigan, consumer sentiment in the US increased to 66.4 points in February.

*This morning, the European Commission`s forecasts for the Eurozone were made public. GDP growth rates are forecasted to set at 0.9% in 2023 and 1.5% in 2024, respectively; inflation is expected to set at 5.6% in 2023 and 2.5% in 2024. 

*On Sunday, US fighter jets shot down an octagonal object in the vicinity of Lake Huron – this is the fourth flying object to be shot down over North American territory in less than 15 days and put US security forces on alert. 

Economic environment

The holding of government securities decreased to 1,668 billion pesos at the end of January. This figure represents a monthly decrease of 2.29% compared to the end of the level logged in 2022. The monthly performance is mainly explained by a decrease in the holding of M Bonds by 32 billion pesos and 23 billion pesos in Bondes D. However, the increase in the holding of Udibonos and Cetes by 8 billion pesos in each of these instruments limited the monthly results to a mere outflow of 39 billion pesos.

Kristalina Georgieva, Managing Director of the IMF, reported a less negative environment during her participation in the World Government Summit on Monday. She described the IMF`s current outlook as “less bad, not good” given the slowdown in economic growth this year and concerns about inflation. However, she noted that the US economy could avoid a recession thanks to the labor market`s strength; in addition, the reopening of China`s economy would lead consumers to spend money saved during the lockdown period. With respect to inflation, she acknowledged that progress has been made due to central bank decisions, although she said “…the fight is not yet won”, adding that IMF estimates don`t consider that monetary tightening will continue throughout 2024.