Mexican President AMLO passes 100 days in office as economic concerns remain
Though AMLO retains 78% support, investors have shown concern over his plans to boost economic growth and to reform and raise output at state oil group Pemex.
Growth for 2019 has already been downgraded from 1.7% to 1.5%, and Pemex is expected to have reduced daily production for most of 2019 as the government has ended the participation of foreign oil companies in future Mexican production. Failure to attract foreign investment would leave Pemex with the burden of financing most new oil production, potentially reducing longer-term revenues from company that are vital to increasing social spending.
While AMLO’s positions are unlikely to dent his short-term popularity, his continued commitment to rolling back his predecessors’ reforms to the oil industry have reduced market confidence. A further deterioration in growth and external market conditions could dent AMLO’s pre-election pledges to raise living standards and reform and strengthen an oil sector around Mexican interests. However, his continued popular support means he still has a clear mandate to carry out such ambitions into his next 100 days.
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