The Day at a Glance | July 25 2023

*Mexico´s economy didn’t log monthly growth in May due to a decline in the tertiary sector; on an annual basis, the IGAE recorded 3.2% growth, below the estimated IOAE.

*The IMF revised its 2023 economic growth forecasts upwards slightly but warned that economic risks remain in place.

*The Federal Open Market Committee meeting kicks off today, in which tomorrow´s monetary policy meeting will be discussed; a 25 base point increase is expected.

*Republicans are seeking the removal of Joe Biden over alleged involvement in his son Hunter Biden’s business dealings.

*China replaced its Minister of Foreign Affairs, Qin Gang, after he was absent from his duties for a month.

*Wildfires bring death and destruction to large areas of the Mediterranean.

*This Tuesday, the Conference Board will release its Consumer Confidence Index for June, which, according to the economists´ consensus, is expected to reach 112 points (previously 109.7).

Economic environment

The Global Indicator of Economic Activity, better known as the IGAE for its initials in Spanish, recorded an annual 3.2% rate of growth in May, falling short of the timely indicator made known by the INEGI, which forecasted a 3.6% figure. On a monthly basis, the IGAE logged no growth. This was the result of slight advances in primary (+0.3%) and secondary (+1%) activities, while tertiary activities declined (-0.4%). In its monthly comparison, the IOAE expected 0.4% growth. On an annual basis, however, the readings showed greater momentum. Tertiary activities recorded 3.5% growth, accompanied by a 2.8% increase in secondary activities. Lastly, primary activities recorded a moderate 0.5% hike compared to May of last year.