The Day at a Glance | June 26 2023

The Top

*Mexico´s tertiary sector accelerated its pace of growth, driving the IGAE to log a positive surprise in April. 

*The Bank for International Settlements called for further interest rate hikes, warning that the global economy is at a crucial point due to the fight against inflation. 

*Credit rating agency S&P cut China´s growth estimate for 2023 to 5.2% (5.5% prev.). 

*Russian officials emphasize unity after successfully averting the insurrection by the Wagner Group over the weekend. 

Economic environment

The Global Economic Activity Indicator, better known as the IGAE in Spanish, recorded an annual 3.3% rate of growth, surpassing the INEGI´s Timely Indicator estimate, which forecasted a 2.4% figure. On a monthly basis, the IGAE logged a 0.8% increase, boosted by the tertiary sector, which grew by 1.0% This was due to ta rebound in retail trade (2.3% m/m) and activities related to tourism such as transportation (2.8% m/m) and accommodation services (2.1% m/m), as well as a remarkable increase in recreational services (12.6% m/m), which are at least partly associated with the Easter holiday period. Additionally, the primary sector logged a significant recovery (1.2% m/m), combined with the already known data for the tertiary sector of 0.4% m/m. The annual readings show a similar trend, with tertiary activities growing by 4.1% (the second highest figure in the last six months); secondary activities by 1.6% y/y, and primary activities by 3.0% y/y.