The management of the next Administration will depend on how Congress is formed, said the company Moody’s.
The rating agency Moody’s estimated that if the Morenista candidate Claudia Sheinbaum becomes President, the possibilities of seeing changes in public policies are very low and her Administration will be limited by the little room for budgetary maneuver.
“We believe that substantial changes in public policies are unlikely if Caludia Sheinbaum, Morena’s candidate, wins the elections in June. However, the next Administration’s room for maneuver will depend on how Congress is formed and will most likely be limited by the weakening of the fiscal stance,” he noted in an analysis document.
The weakening, she detailed, would be led mainly by those supporting Pemex.
“In particular, the Government’s ability to provide virtually unrestricted financial support to Petróleos Mexicanos will decline in light of the national oil company’s growing cash needs and the prospects for weakening public finances,” it notes in its analysis “Macroeconomic Outlook.” Global 2024”.
Likewise, she notes that she believes that the Country’s solid economic growth, strong increases in real wages and election-related spending will keep underlying inflationary pressures firm this year.
By 2024, she estimates that the country’s economy will grow 2.2 percent from the 3.2 percent observed last year.
On the other hand, the rating agency mentions that it expects nearshoring to continue bringing important benefits to Mexico in the future and contribute to maintaining growth above the country’s 2 percent potential until next year.
However, she clarifies that structural deficiencies related to infrastructure, public policy obstacles and water scarcity in Mexican industrial centers near the United States will prevent all its benefits from being realized.
TYT Newsroom