Background on the Previous Administration
During the previous administration, those genuinely interested in Mexico’s economic and financial indicators did not consider the morning press conferences as an objective evaluation of the country’s situation. These conferences were primarily viewed as propaganda exercises, focusing on President López Obrador’s activities that further negatively impacted Mexico’s economic performance.
Current State of Morning Press Conferences
Today, the morning press conferences have changed in form but not substance. The propaganda remains detached from the country’s economic-financial reality, with a triumphist narrative that hard data does not support.
The regime’s electoral base listens to the equivalent of this sexenio’s “we’re doing great” rhetoric, yet intuitively understands that their economy does not back up these claims. It’s increasingly difficult to blame the past, as today’s “past” is the current administration itself.
Justifying Economic Shortcomings
Those seeking signs of policy adjustments to rectify the economic course find justifications instead, claiming any negative data—like the recent GDP trimestral decline—is due to external factors, such as Donald Trump.
Previously, all was blamed on the COVID-19 pandemic. However, Mexico experienced the most significant economic decline and highest death toll in the region, despite having similar-sized economies. This was due to the previous government’s inaction and poor public policy decisions.
Impact on Investments
Uncertainty surrounding Mexico’s future trade relationship with the United States has indeed stalled investments, caused disruptions in industrial chains, and altered business sentiment.
However, there’s more to Mexico’s economic situation. An authoritarian path is underway, a genuine concern among national and foreign analysts and decision-makers, transcending the “commentariat”—voices of the right.
Concerns from Global Financial Analysts
For instance, analysts from global financial firm UBS and other investment banks have expressed concerns about the balance of powers and legal security for the business sector due to the amendments made to the Amparo Law and restructuring of the Judicial Power.
Decision-makers worldwide read these reports and base their investment decisions on them, avoiding areas with uncertainty.
Increased Government Discretion and Reduced Legal Defense for Businesses
Objectively, the limitation on suspending administrative acts increases government discretion and reduces the legal defense margin for businesses, making Mexico a riskier market for industries dependent on permits and concessions.
Key Questions and Answers
- Q: What was the previous administration’s approach to economic indicators? A: The previous administration’s morning press conferences were not considered an objective evaluation of Mexico’s economic situation, focusing instead on President López Obrador’s activities.
- Q: How have morning press conferences evolved? A: While the form has changed, morning press conferences still present a detached propaganda narrative from Mexico’s actual economic-financial reality.
- Q: How does the current administration justify economic shortcomings? A: The administration attributes negative data, like GDP declines, to external factors such as Donald Trump.
- Q: What impact has uncertainty about the U.S.-Mexico trade relationship had on investments? A: Uncertainty has stalled investments, disrupted industrial chains, and altered business sentiment.
- Q: What concerns exist about the current administration’s policies? A: Concerns include an authoritarian path and reduced legal security for businesses due to changes in the Amparo Law and Judicial Power restructuring.
- Q: How do these concerns affect Mexico’s attractiveness to investors? A: Increased government discretion and reduced legal defense for businesses make Mexico a riskier market, deterring industries dependent on permits and concessions.
