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In April 2021, the nominal annual contraction of current commercial banking credit to the non-financial private sector was -8.8% (-14.1% real). Despite the improvement in some indicators of economic activity, the different portfolios showed a lag in their recovery.
Bank credit to the private sector fell 7.9% in March due to the performance of the consumer and business portfolios, while demand deposits continued to drive bank deposits.
The consumption growth rates in May were lower across all countries except Mexico due to the Covid-19 impact starting to improve in May 2020.
More than a year after the COVID-19 pandemic began, the labor market shows gradual recovery levels in employment levels; however, the recovery has been insufficient to close the gap to the pre-pandemic employment levels.
Every quarter, the Ministry of Economy (SE) releases an initial data on foreign direct investment (FDI) that adjusts over time. In recent days, there has been debate about the most recent FDI data, corresponding to the first quarter of this year.
June 1, 2021
Mexico | Remittances surprise in April (+ 39.1%), world remittances contract 2.4% in 2020
In April 2021, 4,048 million USD entered Mexico in remittances, it is the second largest month exceeded only by March 2021. In 2020, the World Bank estimated that remittances worldwide could fall 19.9% in 2020, however, the latest estimates suggest that they only contracted 2.4%.
We offer a novel methodology combining high frequency card transaction data from BBVA and point-of-sale data from cash operations registered at convenience stores from Frogtek by Clarity AI to study changes in consumption patterns relative to variations in income, including changes in items consumed and payment channel.
Even though the economic recovery continued during the first quarter of the year, both the lower current account deficit in 1Q21 vs. 1Q20 and the sizable contraction of Net Foreign Direct Investment still reflect some economic weakness