Amlo’s referendums, Colombia’s fiscal challenge

The market reaction to the incoming Mexican government’s public consultation is unlikely to be as bad as the last one, which voted to scrap a flagship airport project. Even so, it provides more evidence that Andrés Manuel López Obrador (Amlo) is shifting away from being a moderate centrist and may seek a larger fiscal loosening than we had previously anticipated. Elsewhere, Colombia’s fiscal vulnerabilities appear to be growing again.