Latin America Advisor

Latin America Advisor

A Publication of The Dialogue

What Does Morena’s Dominance Mean for Mexico’s Economy?

Mexico’s peso has tumbled against the U.S. dollar since Claudia Sheinbaum was elected president and the ruling Morena party dominated congressional elections on June 2. // File Photo: Mexican Government.

A day after the landslide victory of Claudia Sheinbaum, the candidate of Mexico’s ruling Morena party, and the party’s dominant showing in congressional and state races, the country’s peso and stock market plummeted. The following day, Finance Minister Rogelio Ramírez de la O–who Sheinbaum said will remain in his position in her administration–sought to reassure investors that the incoming government will remain committed to fiscal discipline. He said the government will cut the budget deficit and maintain central bank autonomy. To what extent is Sheinbaum’s team calming the markets, and how are investors likely to react in the coming months? What will Sheinbaum’s policies mean for Mexico’s economy and investment? What are the biggest economic changes that Mexico could see under her administration?

Andrés Rozental, member of the Advisor board, president of Rozental & Asociados and former deputy foreign minister of Mexico: “The most important lesson for Mexico’s president-elect to learn since her landslide victory is that financial markets and investors act as a check on questionable economic and political proposals. Although current President López Obrador (AMLO) insists that ‘justice’ trumps the markets, or even the law, Claudia Sheinbaum had a good baptism of fire as to why that isn’t the case. Even after Mexico’s finance minister tried to calm markets, the peso fell more than 8 percent in the week after…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at

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