President Andrés Manuel López Obrador has expressed concerns about potential economic instability in Mexico following the upcoming presidential election in the United States. To prepare for any possible impacts, he has announced plans to leave a reserve of between 600,000 and 700 billion pesos for the next administration, led by Claudia Sheinbaum Pardo. This reserve will be made possible by the fact that the growth of the debt left by López Obrador’s administration will be less than that left by previous administrations, with only a 2 point GDP difference compared to 7 to 7.5 points under Felipe Calderón and Enrique Peña Nieto.
During a recent conference, López Obrador emphasized the importance of acting cautiously in light of the upcoming US elections. While he does not anticipate immediate economic instability, he pointed out that the inauguration of the new US president could potentially lead to financial ramifications. Given Mexico’s close economic relationship with the US, López Obrador stressed the need to protect Mexican economy and shield it from any potential instability.
López Obrador assured that all pending projects are guaranteed but emphasized that he cannot commit additional resources for future plans. He highlighted the importance of leaving healthy public finances for incoming administration to ensure stability and prevent any need for seeking loans from institutions like International Monetary Fund or World Bank. By maintaining fiscal responsibility, Mexico can navigate any economic challenges that may arise in aftermath of US presidential election.
