The Day at a Glance | October 31 2022

*Mexico`s economy grew more than expected in the 3Q22 (1% q/q; 4.2% y/y).

*Inflation in Europe once again increased at a record 10.7% annual rate.

*Official PMI`s in China confirmed a contraction in activity during October.

*Luz Inacio Lula da Silva won Brazilian Presidential elections.

*European GDP increased 0.2% in the 3Q22, 2.1% annual.

*Democrats seem to be losing Congress in next week`s elections.

*European Parliament calls for updating trade agreement with Mexico more quickly.

*Grain ships leave Ukraine despite Moscow`s attempt of blocking. 

Economic environment

Growth in Mexico. Timely GDP growth figures in Mexico for the 3Q22 surprised to the upside by logging a 1% quarterly rate of growth in the economy (vs 0.8%e.) and 4.3% annual (vs 3.3%e.). The largest contribution came from the tertiary sector, which increased 1.2% quarter to quarter. Secondary activities grew 0.9% and primary activities did the same in 1.8% (quarterly). With these figures, growth during the first 9 months of the year set at 2.7% with respect to the same period of 2021, and the economy is forecasted to close 2022 with growth above 2%. Exports have gained momentum along with a strong domestic recovery in domestic activities – which logged surprising growth in August with the highest rate of expansion in over a year. The data suggests that growth in the domestic market (services and consumption) could make Mexico`s economy resistant to a slowdown in the United States; although expectations of growth in 2023 are still low, with forecasts of a recession in the US and a negative impact on the domestic market due to high inflation and interest rates.