Jose Cruz
Financial Analyst
2018: Mexican Presidential Elections and Financial Uncertainty
The year 2018 is a period of utmost importance for the future of the country, especially its economy, given the upcoming electoral process. This is because the actions and ideology of the next government will influence the policies that will either encourage or discourage the creation of businesses and private capital investment, which in turn will determine job creation and to a large extent, the population's income level.
The country's economic growth in the next six years will depend largely on the election results, which is why there is great uncertainty in the financial, economic, and social environment. This uncertainty can lead to a decline in GDP growth this quarter. In addition to this, the expansion of the indicator in 2017, according to figures from INEGI, was only 2%, making it the year with the lowest economic growth in four periods.
The second quarter of the year, which began this April, will witness the climax of this entire process, as the candidates' campaigns unfold and as the end approaches, the survey numbers will gradually converge towards the definitive result. After this period, investors will have solid ground to stand on and will have a better understanding of the new conditions that Mexico will have to put their money to work and, consequently, to reactivate the country's economy.