President Andrés Manuel López Obrador has announced that he will leave a reserve of between 600 thousand and 700 billion pesos for the next administration, which will be led by Claudia Sheinbaum Pardo. This reserve is intended to combat potential economic instability that could arise from the winner of the presidential election in the United States. Despite his confidence that these resources may not be necessary, López Obrador emphasized the need to act cautiously leading up to the US elections to mitigate any potential economic shocks.
López Obrador highlighted the interconnectedness of Mexico’s economy with that of the United States, stating that any adjustments made by the newly elected US government could have a significant impact globally. Therefore, he stressed the importance of shielding the Mexican economy to maintain financial stability in the face of potential external economic shocks. He also noted that while pending projects are secured, he cannot promise additional resources to future administrations. By leaving a substantial reserve and robust financial foundation, López Obrador aims to empower the next administration to navigate potential economic challenges effectively.
The President explained that this reserve will be funded by keeping the growth of debt during his mandate to less than 2 points of GDP, a goal that he feels confident will be achieved given past administrations’ debt increases. While López Obrador trusts that these resources may not be necessary, he emphasized the need for caution leading up to US elections. The interconnectedness of Mexico’s economy with that of the United States means any changes made by Trump could have a ripple effect on Mexico’s financial stability.
By leaving a reserve and robust financial foundation, López Obrador aims to give future administrations flexibility in navigating potential economic challenges. He believes this is crucial for maintaining healthy public finances and ensuring future governments have access to funds without having to resort to international loans.
The decision comes after López Obrador received criticism for his handling of Mexico’s debt levels during his presidency. However, he believes this measure will help maintain stable finances and allow for effective management in case there is an unexpected economic downturn or other external factors affecting Mexico’s economy.
Overall, President López Obrador’s decision shows caution and proactive measures towards mitigating any potential economic shocks caused by external factors such as US elections or global market fluctuations. His legacy will be remembered as someone who took steps towards ensuring long-term financial stability for Mexico while also addressing concerns about debt levels during his presidency.
