The Day at a Glance | January 2 2023

  • The Ministry of Finance and Public Credit (SHCP for its initials in Spanish) made its public finance through November known. 
  • The Central Bank of Mexico will reveal remittances through November; they set at 5,359 million dollars in October. 
  • Mexico`s December manufacturing index figures will be made known today. 
  • Even with a better than expected figure (44), the Chicago manufacturing index linked four consecutive months of contractionary figures; it logged a 44.9 level in December. 
  • Purchase orders for manufacturers in China logged their largest decrease since February of 2020 with a 47 figure in December (48 prev.). 
  • In Europe, December`s manufacturing index logged a 47.8 figure; an improvement from the previous 47.1. 
  • International Monetary Fund Director, Kristalina Georgieva, warned of a complicated 2023 in light of weakening economic activity in the US, EU and China. 
  • Mexico`s Supreme Court will pick ministers that will lead the Federal Judicial Power for the next four years. 

Economic environment 

In November, the public sector balance logged a -154,834 million peso deficit – accumulating a total -611,146 million peso figure from January to November. This figure entails a 25.9% real annual increase compared to the same period of last year. With this, budgetary revenues in the first eleven months of the year set at 5 billion 944,460 million pesos, which logged a 4.9% increase, and 324.9 billion pesos more than what was expected. This is partially explained by greater oil revenues due to higher oil prices in Mexico – which led to a 32.4% increase in real terms. Tax revenues set below what was estimated, at 118.5 billion pesos due to stimulus carried out on fuels through IEPS. For their part, net expenses during the January-November period reached 6 trillion 491.3 billion pesos, and took the Federal Government`s net debt to 11 trillion 33.4 billion; and the public sector`s debt to 13 trillion 598.1 billion pesos. The balance of the public sector financial requirements increased to 13 trillion 578 billion pesos. 

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