The Day at a Glance | October 27 2021

The Top

*Mexican exports increased at an 8.2% annual rate in September, boosted by oil exports.

*ILO expects the total number of hours worked in 2021 to be 4.3% less than its pre-pandemic level, equivalent to a loss of 125 million jobs.

*Senators approve 2022 Fiscal Miscellaneous; it was passed over to the executive power for its publication.

*Oil prices recede in light of growing U.S. inventories.

*Germany reduces its 2021 growth estimate to 2.6%; United Kingdom increases its estimate to 6.5%.

*Earnings in China`s industrial sector maintains growth (16.3% annual Sep.).

Economic environment

Mexico`s exports increased in September. Timely trade balance figures made public by the INEGI show that Mexico`s exports increased 8.3% at an annual rate, while imports increased 29.1%. Growth in both was led by oil exports (64.2% annual) and imports (83.8%), which is most likely related to the strong increase in international crude oil prices in recent months. Apart from this component, manufacturing exports increased 6.1% annually during the month as automobile exports logged a (-) 10% contraction (-6% exports destined to the U.S. and -28.5% destined to the rest of the world). The automotive sector has been one of the most affected by the disruptions in supply chains and the scarcity of semiconductors at a global level. Part of the decrease has been offset by growth in non-automobile manufacturing exports (14.9%), agricultural goods (3.3%) and extractive industries (2.7%), which has maintained export volumes relatively stable in the last few months. Regarding imports, non-oil imports increased 24.7% annually, and overall, the volume of imports has started showing moderation in growth. All in all, the country`s trade balance recorded a deficit worth 1,697 million dollars; essentially explained by a deficit in the oil trade balance (-2,025M) despite a surplus in the non-oil trade balance (338M).