Mexico economy

Published On Oct 27, 2024, 8:35 PM

Claudia Sheinbaum has taken over as Mexico's president from Andrés Manuel López Obrador, inheriting a mixed economic landscape. While Mexico has emerged as the largest trading partner of the U.S. due to 'nearshoring,' the state oil company Pemex faces significant challenges with around $100 billion in debt, raising concerns about its future and the broader economic implications. Sheinbaum's administration will need to address Pemex's debt, maintain economic growth, and navigate complex relations with the U.S., especially with the renegotiation of the USMCA looming.

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Stock Forecasts

EWWView EWW chart on TradingView

Positive

Due to strong trade relations with the U.S. and substantial foreign investments from companies like Amazon and Volkswagen, Mexico's economy appears poised for growth, suggesting a positive outlook for Mexican businesses tied to exports and manufacturing.

PBRView PBR chart on TradingView

Negative

Pemex’s significant debt and operational challenges could hinder its performance and pose broader economic risks for Mexico, leading to a negative outlook for investments related to the energy sector in the short term.

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