(Mexico City) The Mexican Minister of Finance tried to reassure investors on Tuesday after the fall of the Mexico stock market on Monday (-6%) the day after the overwhelming victory of the left party in power in the presidential election and in Parliament.
Finance Minister Rogelio Ramirez de la O called “international organizations and private investors” to assure them that “macroeconomic stability and fiscal prudence” will be President-designate Claudia Sheinbaum’s priorities when she takes office on October 1st.
The Mexico stock market rebounded by three points Tuesday morning.
Buoyed by the popularity of outgoing President Andres Manuel Lopez Obrador, Ms Sheinbaum became the first woman elected president in Mexico’s history with a landslide victory over her rival Xochitl Galvez.
The former mayor of Mexico City will be able to rely on a two-thirds majority in the Chamber of Deputies, and perhaps in the Senate, according to partial results from the National Electoral Institute (INE).
If trends continue, the ruling Movement for National Regeneration (Morena) and its allies could amend the Constitution as they wish.
The new administration’s plan “is based on financial discipline, respecting the autonomy of the Central Bank, commitment to the rule of law, and facilitating national and foreign private investment,” according to the transcript of the interview released by the Ministry of Finance.
On Monday, Ms. Sheinbaum said Mr. Ramirez de la O had agreed to stay in her position when she takes office on October 1.
It inherits a deficit that could be 5.9% of GDP this year, the highest in decades, according to the International Monetary Fund (IMF).
The S rating agency
“Like previous administrations, the country’s new government will face the challenge of maintaining economic stability while meeting expectations for better living conditions and more public services,” adds S
“Although Mexico’s economic growth was 3.1% last year, it remains underperforming compared to other emerging markets,” the ratings agency added.