AMLO MAY START HIS PRESIDENCY WITH FAVORABLE ECONOMIC POLICY ANNOUNCEMENTS

MEXICO - In Brief 02 Jul 2018 by Esteban Manteca

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Finally AMLO won Mexico’s Presidency after three attempts. In previous presidential elections in 1988, 1994, 2000, 2006 and 2012, economic continuity was essentially granted by market friendly economic policies and strong committments to preserve economic stabilty.AMLO is not antimarket per se, as demonstrated when he was head of Mexico City’s government, however he is strongly leaned to reduce economic inequality in Mexico, through public policies designed for that purpose and use government spending to lead economic development.AMLO has stated he is against some of Mexico’s recent structural reforms, particularly education and energy, which has created some uncetainty about weakening institutions, rule of law and government intervention in key áreas, including economic.We foresee that in his first public appearances AMLO will call for national unity and try to send comforting messages to domestic and international communities.Most likely he’ll confirm his economic team, composed of businessmen and respectable academicians and center left economists: Alfonso Romo (Chief of Staff), Carlos Urzúa (Minister of Finance), Graciela Márquez (Minister of Economy), Gerardo Esquivel (Economic Adviser) and Jesús Seade (NAFTA negotiator). This group understands clearly the importance of preserving economic stability and healthy public finance and external equilibrium, however they lack government experience and will be faced by a group of radicals, long time AMLO followers, whose role in the cabinet is still unknown. It is likely that the economic team will publicly state continuity in fiscal and financial policies, particularly those that will apply in 2019, like the Federal Budg...