Mexico appointments signal economic continuity

Significance

The future ministers are a mixture of her own allies and those of Andres Manuel Lopez Obrador (AMLO), signalling the power and influence that the departing president is likely to retain. The new government will closely follow AMLO's economic policies.

Impacts

• Concerns around incoming legislation from September will perpetuate the volatility of the peso-US dollar exchange rate.
• An AMLO-Sheinbaum power struggle after Sheinbaum takes office would generate major political and economic uncertainty.
• Major infrastructure projects such as railway expansions and improvements pose risks of substantial budget overruns.