Mexico’s Rising Left-Wing Candidate AMLO Could Usher In Economic Uncertainty: Fitch Ratings

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AMLO Could Usher In Economic Uncertainty
AMLO’s possible win in the 2018 Presidential election could lead Mexico’s economy into a period of uncertainty and volatility, according to international rating agency Fitch Ratings. (Flickr)

Espa帽olCould聽a victory for聽left-wing Presidential candidate聽Andres Manuel Lopez Obrador damage Mexico’s economy? Some are claiming that it might.

According to international rating agency Fitch Ratings, AMLO’s possible win in the 2018 Presidential election could lead聽Mexico’s economy into a period of聽uncertainty and volatility.

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Senior Director and Head of Fitch’s Latin American Sovereign Group, Shelly Shetty, said聽the next general elections in Mexico will聽be “very competitive” as the opposition National Action Party (PAN) “is resurfacing” and AMLO “is rising in the polls.”

 

During a forum titled聽“Economic Performance, Populism and Trade Relations: Fitch Perspective on聽the Global and Mexican Economy,” Shetty said聽the organization’s estimation is聽based on AMLO’s policies on聽renegotiating the North American Free Trade Agreement.

“If you have AMLO as the new president in 2018, clearly that can lead to a level of political uncertainty that we would have to take into account” Shetty said while聽video conferencing during the forum.

Fitch members said they believe that the party the Cancun native presides over, the National Regeneration Movement (Morena), will聽not obtain a majority in the Mexican Congress, which would make it difficult to predict which policies could go into聽effect. This is one of the reasons that聽AMLO’s eventual victory could provoke volatility.

The senior director said聽that in 2018, Mexico will continue with its fiscal objectives, so it will be necessary to monitor what the new president implements following the elections.

Source:聽El Economista

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