The Day at a Glance | July 27 2021

The Top

*Mexico`s economy grew 0.6% during May, 25.3% at an annual rate.

*Exports(0.25% m/m; 29.1% y/y) and imports (0.24% m/m; 52.3% y/y) continued to recover during June.

*Flight of capital risks in Chinese markets increase after firm regulatory actions in Beijing were carried out in the tech and education sectors.

*Republicans and Democrats still haven’t agreed on an infrastructure package in the United States.

*Economic indicators: Consumer confidence figures are expected to be published in the US (123.9e. vs 127.3 prev.).

Economic environment

Mexico`s economy continued to recovery during May. According to the Global Indicator of Economic Activity, published by the INEGI, Mexico`s economy continued to expand during May by recording a 0.6% rate of expansion during the month. At an annual rate, growth set at 25.3%, which reflects that the economy reactivated after the pandemic`s effects seen a year ago. The industrial sector was the one that expanded the least in May 2021 by recording a mere 0.1% rate of growth, even though it remains as the sector that logs the fastest rate of recovery at an annual rate (36.6%). Services expanded 0.8% during the month and recorded a 21.6% rate of recovery in the last twelve months; this confirms a slower pace of the internal market`s normalization. Lastly, the primary sector was the one that grew the most during May and logged a 8.4% month over month rate of expansion, and 10% in the last twelve months. Towards the end of the week, timely GDP estimates for the 2Q21 will be made public; an 18% rate of growth is expected due to the pandemic`s effects seen in the same quarter of last year.