The Day at a Glance | November 28 2022

*Exports (-4.17% m/m) and imports (-2.36%) in Mexico decreased during October.

*Protests against COVID lockdowns erupted in China.

*The Eurozone`s increasing rates cycle is far from its end: Klaas Knot, member of the ECB.

*Chair of the Federal Reserve, Jerome Powell, will participate in a Brookings Institution event on Wednesday.

Economic environment

Mexico`s trade balance. Exports and imports in Mexico logged a setback in October, according to timely INEGI figures. Exports decreased (-) 4.17% due to widespread decreases in all types of exports (oil -11.09%, non-oil -3.69%). The figures could be starting to reflect a cooling in foreign demand as a slowdown starts to materialize in the United States – along with high interest rates and inflation. Imports, for their part, receded (-) 2.36% monthly and were led by a setback in oil imports (-17.66%) and a marginal decrease in non-oil imports (-0.11%). Imported goods logged the weakest performance (-12.16% monthly) while imported intermediate (0.98%) and capital goods (-0.61%) barely decreased. Despite there being monthly contractions, exports and imports both logged double digit growth at an annual rate (17.7% and 14.8%, respectively). However, stabilization starts to be seen in 2022`s upwards trend. With these figures, October recorded a trade deficit worth 2,012 million dollars and Mexico has accumulated a deficit worth 27,309 million dollars in the first ten months of 2022.

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