Mexico's Fiscal Strategy: Bold Cuts, Big Plans

Mexico's new president has unveiled an unexpected fiscal strategy for 2025, blending strict budget cuts with robust social programs. This week, we're examining how her MX$9.1 trillion budget plan aims to reduce Mexico's deficit from 5.9% to 3.9% of GDP.

Our analysis by Johan Petersmann reveals striking contrasts: while defense faces a 44% cut and infrastructure spending drops 14%, social programs receive MX$835.7 billion. Through ambitious 2-3% growth projections and strategic spending cuts, we explore how Sheinbaum's economic balancing act could reshape Mexico's business and innovation landscape.