Caution, the best plan for Claudia Sheinbaum

MEXICO CITY (El Universal).— The uncertainty caused by the approval of the judicial reform and other structural changes that may be applied in Mexico justify a cautious investment strategy in the country, the bank considered. UBS in an analysis.

“While there is optimism about possible pragmatic decisions by Sheinbaum, especially when it comes to the private sector, relying solely on hope can be dangerous. A cautious investment strategy is justified in Mexico until there is more clarity in policies,” the document details.

In the text “Seeking clarity. Investing in Mexico”, the investment bank of Swiss origin pointed out that Claudia Sheinbaum’s first message as president of Mexico will be key for investors, at a time when clarity is sought for capital.

“Claudia Sheinbaum’s inaugural address, due on October 1, will be a key indicator for markets as investors look for signs of whether her administration will maintain policy continuity or adopt a more business-friendly approach.” , he indicated.

He added that while secondary laws related to the reform could help Sheinbaum distinguish his administration from President Andrés Manuel López Obrador, more measures are needed to address investor concerns, ensure stability and commitment to international trade obligations.

In its document, UBS highlighted that while the recently approved judicial reform will likely weaken checks and balances in the country, it should be remembered that Mexico’s judicial system has long had problems with the rule of law, as highlighted by indicators governance of the World Bank.

“The reform is unlikely to address key issues such as impunity and corruption in the justice system. Furthermore, its implementation could face significant challenges and could risk politicizing the judicial process,” he said.

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