President Andres Manuel Lopez Obrador (AMLO) marked the first anniversary of his electoral victory on July 1, with an open-air celebration in Mexico City’s main square. There he claimed to have delivered 78 of the 100 promises he had made on taking office and said he was optimistic about delivering the rest, including increased economic growth. However, the sudden resignation of Finance Minister Carlos Urzua on July 9 suggests tensions within the administration that may present obstacles for Mexico’s economic prospects and the achievement of AMLO’s objectives.
- Herrera has been well received but he will struggle to convince investors of the government’s ability to maintain economic stability.
- The launch this week of a 25-billion-dollar stimulus package to have an “immediate” economic impact will be an early test for Herrera.
- Political imperatives (especially AMLO’s ‘Fourth Transformation’ narrative) will continue to dominate the government’s decision-making.
- While AMLO is popular, he will dismiss domestic and international criticism, blaming vested interests seeking to maintain the status quo.