The Day at a Glance | March 28 2022

The Top

*Mexican exports increased 16.03% monthly during February and logged a trade surplus worth 1,239 million dollars.

*Inflation for producers in Europe accelerated to 39% annual in February.

*Biden proposed a 20% minimum income tax (includes income and unrealized capital gains) on households worth more than $100 million dollars.

*U.S. Trade representative Katherine Tai showed concern over energy policies in Mexico.

*Central Bank of Japan intervenes to maintain 10-year bond yields below 0.25%; the Yen dropped to its lowest level since 2015.

*China declares quarantine in Shanghai to control the spread of COVID-19.

Economic environment

Strong expansion in Mexico`s exports. Timely trade balance figures made public by the INEGI recorded a 16.03% monthly increase in total exports during February; while imports grew 9.06%. Non-automotive manufacturing exports led the way (25.6% annual), but automotive exports also logged an important rebound in February (31.8% annual) and in the first two months of the year (6.2% annual), which points towards a recovery in the sector at the start of 2022. With this, the trade balance logged a 1,293 million dollar surplus during the month and a deficit worth 4,993 million dollars in the January-February 2022 period. As for imports, intermediate goods increased (10.87%) during the month, which points out there is strength in the industrial sector; while consumer goods imports increased 3.27% and capital goods only logged a 0.62% increase (a sign of possible low investment). Trade balance figures confirmed that exports continued logging a strong growth trend backed by an automotive sector that is starting to export pre-pandemic levels after having logged weakness in previous months.