Citigroup Warns Mexico of Deficit, Price Surges if Obrador Wins
- Economist’s note breaks with banks’ passive role in election
- AMLO would hurt peso and impact credit rating: Sergio Luna
Mexico Held Its First Presidential Debate
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Mexico’s peso would swoon as its deficit balloons under Andres Manuel Lopez Obrador, the presidential candidate who’s leading in polls by double digits, Citigroup Inc. warned in a note to clients.
The economic platform of the front-runner in the July 1 elections would cut 0.7 percentage points from projected economic growth and raise inflation estimates by 23 percent, wrote Sergio Luna, chief economist for Citibanamex, the bank’s Mexico unit. The widening fiscal deficit would impact Mexico’s credit rating and lead to higher interest rates across maturities, Luna wrote.