The Day at a Glance | November 25 2022

*INEGI confirmed 4.2% growth during the 3Q22 in Mexico (0.9% q/q).

*Global growth next year will set at 1.2%, as weak as in 2009: Institute of International Finance.

*GDP growth in Germany (0.4% q/q; 1.2% y/y) raised hopes of a less severe recession in Europe.

*Central Bank of China cut capital requirement rates in the banking sector in 25bp to maintain liquidity and back the economy.

*Economic crisis in Europe affects Black Friday sales.

Economic environment

Growth in Mexico. The National Institute of Statistics and Geography (INEGI for its initials in Spanish) made Mexico`s 3Q22 growth figures public this morning, which confirmed 0.9% quarterly growth and 4.3% at an annual rate. The largest quarterly growth was seen in the primary sector with a 2% expansion; even though the sector is the smallest in the economy, which is why the largest contribution came from the tertiary sector, which logged 1.1% growth. The industrial sector, for its part, logged a 0.6% quarterly increase. At an annual rate, the largest recovery was seen in the tertiary sector, which grew at a 5.5% rate, which was greater than the 3.7% logged in the secondary sector, and the 3.2% figure recorded in the primary sector. Regarding services, the activities that recovered the most at an annual rate were recreation, sports and cultural activities (46.5%), temporary accommodation services (18.9%), and transportation services (12.9%), which reflects an upturn after persistent COVID outbreaks last year. In the first 9 months of 2022, Mexico`s economy has grown 2.9% and is headed towards growth greater than 2% in 2023. The GDP figure was accompanied by September`s IGAE, which surprised to the upside by logging 0.7% monthly growth (5.1% annual), along with services (1% monthly; 5.5% annual).