The Day at a Glance | March 19 2021

The Top

· 10-year Bond recedes slightly; tech sector futures are positive.

· The WTI remains under 60 dollars due to new restrictions in Europe and greater crude oil inventories in the United States.

· The Central Bank of Japan announced a series of monetary policy measures that give it flexibility to reach its inflation target.

· The dollar recedes compared to all other currencies, the peso stands at 20.38.

Economic environment

Aggregate supply and demand for the 4Q20 in Mexico were made public; investment was the most affected component. The INEGI published data on the components that make up supply and demand for the 4Q20. Supply receded 5.2% in annual terms, although it increased 4.8% compared to the previous quarter`s figure, which represents a sequential recovery. Regarding aggregate demand, fixed investment decreased 12.7%. During the quarter, private consumption receded 7.2%, while government consumption and exports increased 1.2% and 3.7% in annual terms. For the entirety of 2020, investment dropped 18.2%, which represents the largest setback and now links several years of it setting in contractionary territory. Consumption decreased 10.4% and exports fell 7.3%. The only component that progressed during 2020 was government consumption (2.3%). This year, we estimate that all components that make up aggregate demand will recover, however, we forecast that exports will lead the way in light of a foreign demand that will grow considerably in the following quarters given the vigorous recovery in US economic growth.