“Claudia Sheinbaum’s landslide victory in the recent Mexican presidential election owes much to her promises to deepen incumbent Andrés Manuel López Obrador’s welfare programs. Yet she will also be inheriting a fiscal imbalance equivalent to 5.9 percent of Mexico’s GDP, the highest since 1988.” In this piece originally published by the Official Monetary and Financial Institutions Forum, Hector Torres says that if Sheinbaum holds to her electoral promises, Mexico’s fiscal deficit may worsen, confronting the International Monetary Fund with a dilemma: accept a reputational cost or trigger a regional crisis.
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