The Day at a Glance | May 26 2021

The Top

*Quarterly growth in Mexico was slightly revised upwards.

*ECB is not hurried to reduce the asset purchasing program: Francois Villeroy, member of the bank`s Governing Board.

*PEMEX produced 1.75 million daily barrels in April (-0.4% monthly; +0.28% annual).

Economic environment

Growth Domestic Product in Mexico recorded 0.8% real growth during the 1Q21, according to final figures made public by the INEGI. The figure compares favorably with the estimated 0.4% and set the economic contraction at an annual rate of (-) 2.8%. Economic activity logged an important rebound in March (2.6%) due to the reopening of businesses and the gradual normalization of activities in the country as services were the ones that increased the most during the month (3.1%). For the 1Q21, some contractions were still seen in the industrial sector (-2%) and in services (-3.4%) compared to 2020, while primary activities were the only ones to record expansion (2.6%). Regarding industrial activities, construction recorded the largest contraction by decreasing 6.8% at an annual rate, while in services, cultural and sport related recreational activities (-44.9% annual), temporary accommodation services (-33.3%) and transportation, mail and storage services (-12.7%) are the ones that have contracted the most. The economic recovery`s boost is expected to be seen more noticeably in the 2Q21 and expectations of growth remain at around 5% for the entire year regarding GDP.

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