December 4, 2020
1. Cabinet changes: Chief of Staff Alfonso Romo resigns
President Andrés Manuel López Obrador announced the resignation of Chief of Staff Alfonso Romo, considered the person closest to the president, and tasked with coordinating the Sustainable Development Agenda 2030 and leading the government’s relationship with the private sector.
The President explained that, in order to take advantage of existing resources, the Chief of Staff’s office will disappear, since Alfonso Romo will continue to support relationships with business leaders and related issues, even without being a public official, meaning the position is no longer required.
2. Private sector and government announce second infrastructure plan
The Minister of Finance and Public Credit, Arturo Herrera, announced the second infrastructure investment package together with the private sector, which contemplates 29 new additional projects representing an investment of USD $228 billion. Likewise, he indicated that this new package includes eight projects that will ensure connectivity with Felipe Ángeles International Airport.
For his part, Carlos Salazar Lomelín, President of the Business Coordinating Council (CCE), indicated that investment in these projects represents 2.3% of Mexico’s GDP, the highest investment in infrastructure in recent years. With the first agreement in the area, a total of 68 works have been added.
3. President Andrés Manuel López Obrador enters his second year in office with 62% approval
According to the “Poll of Polls” created by Oraculus, a combination of the country’s primary polls and public opinion projects to obtain a monthly average, indicated that the approval of President Andrés Manuel López Obrador stands at 62% two years of having initiated his mandate.
In a message to his cabinet and special guests recognizing his second year in office, President López Obrador lamented the death of more than 100,000 mexican people by the pandemic, but stressed that thanks to the effective strategy implemented, the health crisis has been overcome. Similarly, he stressed that, of the 100 commitments made during his campaign, only three remain to be fulfilled.
4. OECD improves Mexico’s economic outlook
In its Economic Outlook, the Organization for Economic Cooperation and Development (OECD) improved the economic forecast for Mexico as a result of the reactivation of certain strategic sectors of the national economy and the promotion of exports with the United States, projecting a GDP increases of 3.6% and 3.4% in 2021 and 2022, respectively.
On the other hand, the Mexican peso has gained ground against the U.S. dollar, reaching levels not seen since February. According to data from the Bank of Mexico, the peso fell below MXN $20 against the U.S. dollar.
5. Standard and Poor’s reaffirms Mexico’s credit rating
Standard and Poor’s (S&P) Global Ratings ratified Mexico’s ratings, maintaining a BBB rating long-term in foreign currency, BBB+ in local currency, and kept the country’s economic outlook at negative. This decision adds to a similar one taken during November by Fitch to maintain the country’s credit rating.
In a statement, S&P indicated that Mexico’s ratings reflect the government’s political stability and regulatory changes over the past decades, as well as the Bank of Mexico’s monetary policy with credible inflation targets.