The Day at a Glance | July 1 2021

The Top

*The Ministry of the Treasury and Public Credit made public positive finance and public debt figures for May.

*Today, OPEC+ will define if greater cuts to global crude oil production will be carried out in August or September.

*Economic indicators: Jobless claims in the US drop to 364 thousand (vs 390 thousand e.); unemployment in Europe fell to 7.9% during May (8% e.).

Economic environment

The Ministry of the Treasury and Public Credit (SHCP for its initials in Spanish) published finance and public debt figures for May. The data shows signs of a 6.7% real increase in public revenues for the January-May period (compared to 2020). The largest increase was recorded in oil revenues (86.6%) due to a rise in oil prices and a recovery in the global economy. Regarding non-oil revenues, taxpayers logged a 0.3% increase in the same period, with a 5% increase in collected Value Added Tax. Spending remained in line with what was planned after spending on healthcare increased 9.1% due to the pandemic, social development grew 4.9% and economic development increased 19% (15.3% because of a rise in spending on transportation – due to the Maya Train project). The Ministry of Treasury and Public Credit highlighted that non-programmable spending decreased (-) 5.1% during the time period, which was a result of lower financial costs (-13%). In fact, a 74.3 billion peso primary surplus was recorded and total debt fell to 47.7% of GDP; forecasts expect the figure to set at 51.4% at the end of 2021 (vs 52.4% in 2020). The Ministry of Treasury and Public Credit assured that debt and public resources are being managed cautiously; something that has been recognized by international credit rating agencies.