Mexico’s presidential election race is starting to take shape, with Finance Minister José Antonio Meade this month stepping down from his post in order to run on the ticket of the ruling PRI party. While the other main parties in Mexico have yet to declare candidates, the early front-runner in July’s vote is the left-wing firebrand Andrés Manuel López Obrador (AMLO). A victory for AMLO would unsettle markets and could weigh on Mexico’s long-run growth prospects by deterring investment. But we think the prevailing view that an AMLO victory would be uniformly bad for Mexico’s economy overlooks the possibility that looser fiscal policy might actually boost growth in the near-term.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services