The Mexican government’s pre-election spending spree means that the next administration will have its work cut out to put the country’s public finances back onto a stable footing. Claudia Sheinbaum, the frontrunner to be the next president, has so far been vague on her fiscal plans. We think some fiscal tightening over the coming years is likely. That said, we doubt she’d keep policy sufficiently tight to prevent the public debt ratio from edging up further.
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