The Day at a Glance | January 25 2022

The Top

*Mexico`s economy grew 0.3% in November.

*China prepares for a slowdown in exports due to less stimuli at a global level.

*Confidence in Germany`s economy continued to improve in January (Ifo 95.2); production chains improved and the Omicron variant is expected to have a limited impact.

*Korea`s economy accelerated in the 4Q21 (1.1% quarterly; 4.1% annual).

*IMF will update its global growth estimates today.

*U.S. puts 8,500 troops on “heightened alert” in light of Russia`s possible invasion of Ukraine.

Economic environment

IGAE confirms growth in Mexico`s economy during November. According to the INEGI`s Global Indicator of Economic Activity (IGAE for its initials in Spanish), Mexico`s economy grew at a monthly 0.3% pace in November (0.3% annual), a positive sign after logging contractions in August, September and October. The fastest rate of growth was logged in the economy`s primary sector (7.2% monthly; 6.9% annual), followed by services, which grew 0.3% month over month and remained unchanged at an annual pace. Industrial activities contracted slightly during the month (-0.1%) although they logged growth at an annual rate (0.7%). Mexico`s economy has still not reached pre-pandemic levels of activity and the weakness seen during the second half of 2021 is starting to raise concerns as it could extend into 2022. According to leading indicators made public last week, the economy could have contracted in December, which is why growth in 2021 could set below current estimates (6%).