Mexico, a geopolitical risk

The consultancy firm specializes in identifying risks for investors and international markets

Mexico, among the biggest geopolitical risks of 2019
The Mexican economy could face challenges - Photo: Edgard Garrido/REUTERS
English 09/01/2019 12:18 Inder Bugarin y Víctor Sancho/Corresponsales Mexico City Actualizada 12:34
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Andrés Manuel López Obrador's government, along with European populism, Brexit, and Trump's unilateral policies, are one the biggest risks for the geopolitical environment in 2019, according to Eurasia Group, a consultancy firm. 

“Until now, Mexico had been in a different political and economic cycle than the rest of Latin America, and in a lower category of political risk. This year, it will look more like its southern neighbors,” says the report.

It also explains that “López Obrador believes that many of Mexico's problems today are a function of the structural reforms implemented since the 1980s. These include an opening of the economy, orthodox macroeconomic policies, privatizations, and deregulation. For López Obrador, making Mexico great again is to take it back to the 1960s and 1970s.”

This information was published by the Eurasia Group in its “Top Risks for 2019”. The consultancy firm specializes in identifying risks for investors and international markets.

The document claims that the international community is facing one of the most dangerous geopolitical environments in decades and that the current dangers will come to fruition in the incoming years.

In regards to Mexico, it questions the economic, social, and security plans proposed by López Obrador's administration. At the same times, it warns that his presidency could be “complicated” for the markets.

“This was always going to be a complicated presidency for markets, and recent actions by the new president have confirmed our expectations, which leaned more bearish than consensus,” said the experts.

In regards to internal issues, the Eurasia Group explains that security is the biggest challenge for the Mexican government.


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