The Day at a Glance | November 27 2020

The Top

· Mexican exports continued to recover at a firm pace in October.

· Chinese industrial companies` incomes grow at their fastest rate in nine years during October.

· India enters a recession after persistent negative effects by the pandemic on its economy.

· Brexit negotiations have still not reached an agreement, Britain and Europeans recognize that there are still large differences to overcome.

Economic environment

INEGI figures show that Mexican exports recorded a 4.81% monthly growth. The value of exported goods was 2.9% greater than what was recorded in the same period of 2019. The recovery is still led by non-oil exports, which increased 4.5% (5.29% annual) compared to a (-) 30.2% setback in oil exports (-7.17% annual). Exports to the United States recorded the largest growth (4.7% monthly). Figures show an acceleration in the recovery of exports during the period after an important setback was seen in September. Imports, on their part, grew a mere 1.26% in October, their lowest level since June. With this, the value of imported goods set at (-) 13.8% compared to the same month of 2019; the largest decreases were seen in oil imports (-33.4% annual; -11.7% annual regarding non-oil). By type of good, imported consumer goods are still lagging the most (-34.4% annual), which is a sign of persistent weakness in domestic consumption`s recovery. Given the firm increase in exports and a more moderate growth in imports, the country`s trade surplus once again approached historically high levels after recording 6,608 million dollars (vs 5,125 million e.).