1 August 2019
- USD 25 billion spending package will boost economic growth but investors will remain concerned over presidential policies
- Economic growth will likely increase over next six months, reducing political pressure on President and spurring modest improvement in investor confidence
- Business community will remain unconvinced that President will take genuinely more pro-business stance, and many firms will therefore continue to defer hiring and investment
Finance Secretary Arturo Herrera announced a USD 25 billion expenditure package on 29 July. This aims to boost the economy, which is close to recession. President Andres Manuel Lopez Obrador (AMLO) meanwhile said that his Government had awarded contracts to three foreign companies to build a new oil refinery, one of his flagship projects. He also said that his administration had settled debts with other investors to end legal claims arising from his prior cancellation of a project to expand Mexico City airport. Separately, Foreign Secretary Marcelo Ebrard said on 30 July that the flow of illegal migrants bound for the US had been cut by a third, following action taken in response to US President Trump’s threats…
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