Mexico: political risk on the rise

5/16/2016 Financial Times

9085212846_3cb274caea_bSweeping, radical, audacious. Those are all good descriptions of the structural reforms enacted by the Mexican government over the past three years. Failure, unfortunately, is another.

Economic growth, rather than accelerating back to 4 per cent and more annually, has stumbled along at barely over 2 per cent. The stock market has flatlined, while the peso has steadily lost ground, and not only against the dollar.

All this has turned international investors from enthusiastic backers of President Enrique Peña Nieto and his programme of energy, telecom, media and fiscal reforms into critics who are dumping their Mexican assets.

Yet fund managers are not nearly as negative as the president’s own compatriots.

Read more…

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