The day at a glance | January 4, 2022

The Top

*IMEF indicators point out that the Mexican economy accelerated at the end of 2021.

*Hospitalizations and deaths remain low despite record figures of COVID-19 cases at a global level.

*OPEC+ is expected to confirm a 400 thousand daily barrel increase in February`s oil production today. 

*Mexico logged remittances worth 4,665 million dollars in November; they reached an all-time high of 46,834 million through the first 11 months of 2021.

*White House nominates economist Philip Jefferson to take one of the Federal Reserve`s vacant seats.

*Unemployment in Germany continues to descend; it logged a 5.2% rate in December – close to its pre-pandemic levels (5%).

*Evergrande investors protest outside of the company`s offices in Guangzhou.

 

Economic environment

Mexico`s economy accelerated at the end of 2021. According to leading economic activity indicators made public by the IMEF, Mexico`s economy accelerated in December and continued to expand. Manufacturing activities logged a 1.8 point increase and set at 52.6 at the end of 2021, with which they remained in expansion for a third consecutive month and reached one of their highest levels of acceleration since 2018. The sector`s data shows important improvements regarding product deliveries and inventory growth, which are signs that supply chain problems have started to disappear. Employment also increased, while production and new orders receded with respect to November`s figures. In the non-manufacturing sector (services and trade), the index increased 2.2 points and set at 52.6, and remained in expansionary territory for a tenth consecutive month; it also reached its highest level of acceleration since mid-2021. Services logged widespread improvement, with solid growth in demand, employment and production. According to figures, December successfully undid the slowdown seen in November and closed 2021 with strength. This is good news after the economy went through a standstill in the 3Q21. With this data, growth is estimated to set at between 5.4% and 6% in 2021. For 2022, the IMEF forecasts economic expansion to set at 2.9%-3.2%.