Claudia Sheinbaum took office as president of Mexico this Tuesday (1), becoming the first woman to hold the position, which she assumes at a time when Mexicans are suffering from organized crime violence and a heavy deficit in second largest economy in Latin America.
Claudia, a 62-year-old scientist and former mayor of Mexico City, was sworn in at a ceremony at the Mexican Congress for a six-year term that runs until 2030.
His supporters shouted “President! President!” and “Long live Mexico!” after Claudia took the oath in front of parliamentarians.
Analysts and political observers predict that Claudia will urgently seek to calm investors after the approval of a controversial judicial reform promoted by her predecessor, Andrés Manuel López Obrador.
“Markets will be watching Claudia Sheinbaum for a predictable, investment-friendly policy and regulatory framework,” said Alberto Ramos, head of Latin America economic research at Goldman Sachs.
“Disciplined management of the budget and state-owned companies, progress in public security and protection of the integrity of key institutions will be fundamental to preserving market confidence and sovereign debt ratings,” added Ramos, highlighting the importance of the state-owned company. energy Petróleos Mexicanos (Pemex).
November’s presidential elections in the United States, Mexico’s biggest trading partner, could increase market volatility, especially if former President Donald Trump, who promised to increase tariffs on Mexican goods, wins.
Sheinbaum’s government will present its first budget before November 15, and the text will be widely analyzed for clues as to whether the new president will fulfill her commitments to reduce the fiscal deficit to 3.5% of Gross Domestic Product (GDP), starting from 5.9%, where it is expected to close the year.
López Obrador, whose six-year term began in 2018, has managed to double Mexico’s minimum wage, reduce poverty and unemployment, broaden the base of social programs and oversee the strengthening of the Mexican peso. These successes increased his popularity and helped lead Sheinbaum, his political heir, to a landslide victory in the June elections.
However, Claudia Sheinbaum, who promised “continuity with change”, will inherit the biggest budget deficit since the 1980s and stagnant economic growth.
Experts have said the Mexican economy will require tax reform to increase revenues, although the president has said publicly that she does not plan a broad tax overhaul. Instead, she said she will look at other options, such as improving tax collection efficiency at customs.
This content was originally published in Claudia Sheinbaum takes office as Mexico’s first female president on the CNN Brasil website.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
