The Day at a Glance | September 3 2020

The Top

· CDC asks US states to prepare to distribute coronavirus vaccine as soon as November 1st.

· Automobile sales grew 5.8% during August in Mexico; confirms a slowdown since July.

· The French government will present a 100 billion euro fiscal stimulus.

· The US Congressional Budget Office forecasts a $3.3 trillion dollar deficit in 2020; debt will exceed 100% of GDP for the first time since World War II.

· Economic indicators: Jobless claims in the US drop to 881 thousand; retail sales fall 1.3% in Europe in July (0.4% annual).

Economic environment

According to the US Congressional Budget Office`s (CBO) forecasts, government debt will exceed 100% of GDP after the important spending carried out due to the pandemic. The CBO estimates a $3.3 trillion dollar fiscal deficit in 2020, almost three times what was seen in 2019 as a result of the large amount of spending to avoid the pandemic`s economic consequences. Towards the end of 2020 public debt is expected to reach 98% of the world`s largest economy`s GDP (vs 79% in 2019) and will surpass 100% of it in the following years; Italy and Japan are other countries whose debt exceed their gross domestic product. The increasing debt and growing deficit has hindered the approval of new stimulus packages in the country as legislators fear that the tendency will become unsustainable. This has become one of the most important issues in midst of the presidential election this year and expectations of seeing the next administration`s efforts to increase revenue have grown.