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Mexico: Amlo leaving public finances on a slippery slope

Mexico’s President López Obrador’s cloak of fiscal prudence is being shed this year as Morena tries to bolster its support ahead of June’s election. As some of the factors supportive of the public finances in recent years also fade, the debt-to-GDP ratio will return to an upwards path. Our sense is that the next government will impose some modest austerity but, if not, a slow burning fiscal problem will emerge.

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