The Day at a Glance | October 20 2021

The Top

*Mexico`s economy grew at a 5% annual rate in September.

*Democrats reduce Biden`s economic package to unblock its approval.

*Chinese real estate company Sinic Holdings Group declares bankruptcy; grace period for Evergrande comes to an end this week.

*President of the Bundesbank Jens Weidmann quits due to personal reasons; warns about inflation in his last message.

*China`s debt falls for a fourth consecutive quarter and sets at 263% of GDP.

*Covid-19 spreads at its fastest rate in three months; China confirms a new outbreak of the virus.

Economic environment

Recovery becomes more moderate in Mexico. According to the Timely Indicator of Economic Activity (IOAE for its initials in Spanish) – made public by the INEGI – it`s estimated that Mexico`s economy grew at a 5% annual rate in September, a slowdown with respect to the 6.2% rate logged in August. The INEGI`s estimates point out that the figure could vary between 3.7% and 6.2%, with a 95% confidence interval. Secondary and tertiary activities slowed down in September. Industrial activities point towards 4% annual growth during the month (vs. 5.2% Aug.), while services recorded an estimated 6.1% rate of growth (vs. 7.8% Aug.). Halfway through the month, the economy in its entirety grew a mere 0.1%. The index points to a recovery that has become stagnant in the last few months, with economic activity levels still below those seen prior to the pandemic. Figures coincide with the IMEF`s leading indicators, which pointed out there was a loss in the recovery`s momentum since June and July.