The Day at a Glance | May 4 2021

The Top

*Income from remittances broke their previous record in March; 4,151 million dollars, which is equivalent to a 31% monthly rise (2.6% annual).

*Treasury department in the US will need 1.3 trillion additional dollars for spending in the second half of the year.

*PEMEX`s crude oil exports drop below 1 million daily barrels (969 thousand in the 1Q21).

Economic environment

Inflows of remittances have increased in Mexico and reached an all-time high during March, by recording an influx that amounted to 4,151 million dollars. Remittances have accelerated their rate of grown in the last 12 months, boosted by fiscal stimuli in the United States. Month over month, remittances increased 31%, while at an annual rate, they recorded 2.6% growth. Analysts` estimates forecasted a more moderate increase during the month – closer to 3,810 million dollars. Remittances have surprised analysts, who expected to see a drop last year because of the recession. However, the stimuli carried out in the United States seems to have incentivized migrants to send more resources to Mexico; now, remittances are expected to remain solid through 2021 amidst a more optimistic economic outlook in the US and with fiscal stimulus still being carried out. It`s believed that income from remittances will keep consumption among low-income households (who have a greater tendency to spend) firm in Mexico. This will help the domestic market show a smaller contraction – after it was decided not to back the economy through special programs during the pandemic. Remittances represent approximately 3.5% of GDP and it`s estimated that around 12 million working Mexicans live outside of the country.