Mexico Prepares to Swear in First Woman President, Claudia Sheinbaum

Claudia Sheinbaum will be sworn in as Mexico’s first woman president. She faces challenges like crime and a large budget deficit in her six-year term.

Claudia Sheinbaum, a 62-year-old scientist and former mayor of Mexico City, is making history. She will soon become the first woman president of Mexico. She will officially take office in Mexico’s Congress on Tuesday, starting her six-year term, which will last until 2030.

Sheinbaum is stepping in at a tough time. She faces big problems, like stopping violence from organized crime and fixing Mexico’s large budget deficit. As the new leader, she will need to find smart solutions to make things better for the country.

Economic Challenges and Investor Concerns

Many people think Sheinbaum will focus on calming down worried investors. They were concerned after the last president, Andres Manuel Lopez Obrador, passed a new law about the courts. This law upset some investors, so now they want to see clear plans from Sheinbaum.

Alberto Ramos, who works for Goldman Sachs, said that investors are hoping Sheinbaum will make rules that help businesses grow. He also said it’s important for her to manage Mexico’s budget wisely, especially with big state-owned companies like Pemex, which is Mexico’s energy company. 

This will help keep Mexico’s economy strong and protect the country’s credit rating.

Another challenge for Sheinbaum could come from the U.S. elections in November. Mexico’s economy depends a lot on trade with the U.S. If former U.S. President Donald Trump wins again, he may raise taxes on Mexican goods, which could hurt Mexico’s economy.

Sheinbaum also needs to prepare her government’s first budget by November 15. Many people will watch closely to see if she can keep her promise to lower Mexico’s budget deficit. The deficit is expected to reach 5.9% of the country’s gross domestic product (GDP) this year. Sheinbaum wants to lower it to 3.5%.

During his six years in office, President Lopez Obrador doubled Mexico’s minimum wage, lowered poverty, and created more jobs. These actions made him very popular and helped Sheinbaum, who is his close ally, win the election in June.

But Sheinbaum will face some big problems when she takes office. She is inheriting the largest budget deficit Mexico has had since the 1980s, and the economy is growing slowly. Some experts believe Mexico may need a new tax system to raise more money. 

However, Sheinbaum has said she doesn’t plan to change the tax system a lot. Instead, she wants to find other ways to raise money, like making tax collection more efficient, especially at customs.

As Sheinbaum steps into her new role, many people will be watching closely to see how she handles these tough challenges. Her choices will affect Mexico’s future for the next six years.