Mexico: Political risks likely to increase - Natixis
|The analysis team at Natixis expects the political risks in Mexico to increase in future which are rising already as President Enrique Peña Nieto’s political relevance is low in line with the end of his term.
Key Quotes
“While there is a growing frustration among Mexicans about politics, the main question is whether we will have political change. Corruption scandals, the liberalization of gasoline prices and President Trump’s Mexico-bashing have gave AMLO a wide array of ammunition. The momentum of the leader of Morena has also helped to bolster his party’s candidates at the regional level.”
“But it is important not to overplay political risk. PRI has in our opinion an incumbency advantage over its challengers in June general elections in Estado de Mexico. This structural leeway for many reasons (power, political structure…) is in place since 1925. Even if a surprise is always possible with still 27% of undecided voters, what will really drive up political risk premium is the political cycle in July 2018. The result is slightly more open and complex with Presidential and Congress elections.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.