September 6, 2019
1. President Andrés Manuel López Obrador presents First Government Report
Mexican President Andrés Manuel López Obrador acknowledged this Sunday in the constitutionally-mandated First Government Report that the country’s economy is slowly growing, but the results in the fight against insecurity have come up short. On the other hand, he stressed that there is better distribution of wealth among citizens, and that austerity measures have achieved savings of MXN $145 billion (USD $7.4 billion).
In his speech, he thanked the business class and the Mexican production sector, naming them fundamental allies who have cooperated and invested to create greater social welfare. Specifically, he thanked Carlos Slim, Carlos Salazar of the Business Coordinating Council and Antonio del Valle, of the Mexican Business Council.
2. Mexico displaces China as the main trading partner of the United States
In June, Mexico replaced China as the main trading partner of the United States, in light of a tariff dispute between the world’s two largest economies, according to official figures from the U.S. government.
The total value of trade between the United States and Mexico was USD $308.9 billion. With the new figures, Mexico was the origin of 15 percent of U.S. imports; Canada, 14.8 percent; and China 13 percent, official sources confirmed.
3. The second year of the LXIV Legislature begins
The Mexican legislature commenced work on the first ordinary sessions of the LXIV Legislature on September 1st. Parliamentary groups have defined their agenda of issues that will be discussed in this current session that will end on December 15th.
For the first time in the recent history of Congress, two women will be responsible for directing the work of the two chambers of the legislature, as Laura Rojas will head the Chamber of Deputies and Mónica Fernández will preside over the Senate of the Republic.
The country’s primary political party, Morena, has in its legislative agenda to approve the Austerity Law, eliminate constitutional privileges, create the National Institute of Health for Welfare, strengthen product labeling and regulate the production and sale of cannabis.
4. Moody’s rating agency analyzes risk in Mexico’s sovereign rating
Rating agency Moody’s could cut the sovereign debt rating of Mexico, between June and September of next year, confirming that the country’s economic growth capacity has consistently reduced, below 2.6%, the trend that GDP had for years.
Mexico’s sovereign cred rating in Moody’s stands at “A3/Negative outlook,” the highest level on the rating scale. Investor confidence in Mexico and growth prospects are being affected by “a lack of economic rationality” relating to government decisions, especially for Pemex.
5. Government: Migration flow reduced by 56% thanks to the Central American Development Plan
Mexican Foreign Affairs Minister Marcelo Ebrard Casaubon, presented the results of the Central American Development Plan, under which migrant flow to the U.S. has been reduced by 56%, a third of these being Mexican nationals.
He explained that the strategy will continue and that a tariff threat from the United States is not expected, since it seeks to reinforce for investment in the development of Central America, which has been the position of the Mexican government since the beginning of the administration of President Andrés Manuel López Obrador.