Sheinbaum’s Triple Economic Dilemma
Mexico faces critical decisions regarding state-owned companies, fiscal deficit, and the nation’s low productivity, an expert writes.
After a smoother-than-expected first year in office, Mexico’s President Claudia Sheinbaum is now facing several thorny economic policy decisions in her second year. Analysts predict Mexico’s GDP will grow by only 0.5% in 2025, a fourth straight year of deceleration that would place the country near the bottom of the G20 and OECD growth charts. Only a modest rebound to 1.3% growth is forecast for 2026. The country also faces a fiscal reckoning, as the burst of government spending during the 2024 election year left the budgetary deficit at a 36-year high. At the...
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