The 10 Economic Challenges Mexico’s Next President Will Face

Mexico’s next president and first female leader, Claudia Sheinbaum, will inherit a country in a unique position to benefit from seismic changes in international trade. It’s also a country with no shortage of issues, from persistent crime to infrastructure woes. The protégé of President Andres Manuel Lopez Obrador, also known as AMLO, will look to continue the country’s ascent on the global stage after a landslide victory on June 2. Here’s a brief overview of the major challenges that Sheinbaum, a former climate scientist, will inherit.

In recent years, Mexico’s growth has averaged just above 2% a year, far below that of other developing economies. The economy had been beating analysts expectations after reopening from the pandemic, until it started disappointing late last year, partly due to a slowdown in construction and exports to the US. Analysts at Monex expect a slight deceleration in economic activity in 2024, a challenge for Sheinbaum given persistent inflation, high interest rates and the largest budget deficit since the 1980s. Domestically, daily life for many Mexicans has been improving. The number of people living in poverty declined under AMLO; the daily minimum wage more than doubled in real terms to 248.9 Mexican pesos, or about $14.7; and the government set aside some $43 billion for social programs this year, more than half for the elderly.