The Day at a Glance | Jun 21 2022

The Top

*Mexico´s economy grew an annual 1% during May, according to the Timely Indicator of Economic Activity.

*Food prices recede in light of fears of a global recession.

*Ukraine reconstruction could cost 1.1 trillion dollars: European Investment Bank.

*Drought in Mexico could extend throughout the entirety of 2022; Southern Baja California, Sonora and Chihuahua have been the most affected states: Conagua.

*Tensions increase between Russia and Lithuania over Kaliningrad blockage.

Economic environment

Growth in Mexico´s economy. According to the Timely Indicator of Economic Activity (IOAE for its initials in Spanish), made public by the INEGI, it´s estimated that Mexico´s Gross Domestic Product increased an annual 1% during May; this links 5 consecutive months of growth. The economy has logged a firm pace of recovery in 2022, although growth has become more moderate with respect to previous months. According to INEGI estimates, the industrial sector contributed most towards growth during the month by logging a 3.3% rate; while services became stagnant (0%). Month to month, the economy grew at a forecasted 0.1% (0.2% industrial sector and 0.1% services). The data matches global growth indicators, which point towards a slowdown at a global level as less accommodative monetary policies on behalf of central banks and inflation start to have a negative effect on demand.