Claudia Sheinbaum's government faces several economic and political challenges at the beginning of her term. One of the main problems is the unsustainable deficit left by her predecessor, which requires measures to reduce public spending. Despite this, Sheinbaum has proposed an ambitious infrastructure program that may need greater public or private investment.
Regarding social programs, the area of "social protection" has experienced significant growth in the first eight months of 2024. If this trend continues, additional spending at the end of the year and in 2025 could be substantial, presenting an additional challenge for Sheinbaum's administration.
Sheinbaum's administration inherited social programs from López Obrador and has added some new ones. It is estimated that by the end of the current year, total spending on these programs will be high, with the possibility of a substantial increase in 2025. Funding these programs may require cuts in other areas or an increase in revenue, which would depend on economic growth.
The government also faces the challenge of reducing the projected deficit for this year, which would involve significant adjustments in public spending. The possibility of attracting private investment as an alternative to public spending is an option, but generating trust among investors is necessary, which is currently hindered by uncertainty created by judicial and complementary reforms.
To address these challenges, the importance of building trust among investors and bridging gaps with sectors that did not support Sheinbaum in the elections is emphasized. Avoiding belligerent language and focusing on building positive relationships could be crucial for the administration's future success. Ultimately, resolving the economic and political puzzle facing Sheinbaum's government will be fundamental for effective management.
