The Day at a Glance | January 20 2021

The Top

· Joe Biden takes possession in the United States.

· Secretariat of Economy in Mexico presents plan for the economy`s reactivation.

· Economic indicators: Inflation in Europe (-0.3% annual, December).

Economic environment

Joe Biden will take possession as the United States 46th President today, in an event that will count on strong precautionary security measures to avoid the virus`s spread. The speech is expected to be focused on the country`s unity after the strong division that was caused by the election and recent violent events. According to recent reports, Biden would sign up to 15 executive orders on his first day as President – in order to unwind some of his predecessor`s most controversial decisions. Some of which stand out the most are having the US return to the World Health Organization, the Paris Agreement, and an order that will eliminate the construction of a border wall on the US-Mexico border. The President is also expected to sign orders that will aid families to face the pandemic, such as the extension of moratoriums for the payment of student debts and forced evictions from homes due to unpaid rent. An ambitious economic plan is also expected to be published in the following weeks, which will include investment upwards of 2 trillion dollars in infrastructure projects and clean energy.

Tatiana Clouthier, head of the Secretariat of Economy presented an economic recovery plan for Mexico yesterday. The aid seeks to support some of the government`s specific goals, such as backing the domestic market, employment and businesses; the promotion and facilitation of investment; aiding international trade; and pursue development of every region in the country. Among the aid – 60 thousand credits to small and medium sized businesses led by women, support for businesses that didn`t receive any help last year and institutions or employers that have fulfilled their fiscal and job responsibilities. The credits will be worth 25 thousand pesos each and will start to be distributed in February (their distribution is intended to be completed before the electoral process). The total size of the package is of 1,600 million pesos in order to comply with credits as well as with the plan`s economic goals. The government also considers having an industrial and technological policy, which would boost innovative and highly exporting industries – some would be the footwear industry, agroindustry, steel, chemistry, electric-electromechanical, plastic, medical supplies, automotive and aerospace. Among the objectives is attracting greater foreign investment through cost reductions for operating in the country (less red tape); increasing exports to new markets; and meet deficiencies seen in each of the country`s regions. The plan has been well received by the private sector, even though it`s still considered insufficient to face the pandemic`s economic consequences.

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