According to Fitch Ratings, economic stability is expected in Mexico after the federal elections in which Claudia Sheinbaum, from the ruling Morena party, won, however, some risks persist in terms of fiscal deficit.

Mexico's new government will have in its favor the benefits of strong macroeconomic institutions and stability, inheriting a stable economy, where Mexico's strong macroeconomic policy framework remains positive for the sovereign rating, while nearshoring remains a growth opportunity.

The deficit will increase significantly this year; however fiscal consolidation will be “a key challenge” for the new government, with the election results on the table, which give the ruling party a large majority in Congress. Fitch estimates that the new president will have an easy time passing budgets and securing the approval of constitutional reforms.