AMLO Coalition Gaining Strength In Mexico's Congress

• Political realignment in Mexico's Congress will further strengthen the ruling coalition of President Andrés Manuel López Obrador (AMLO), with the qualified majority for constitutional change within reach for a number of initiatives.

 

• However, the Senate will offer a counterweight to AMLO’s policy agenda, as Morena’s lack of a two-thirds majority will require compromise on any potential constitutional reforms.

 

• Fitch Solutions notes mounting risks from regulatory changes, especially in the energy sector, which threaten investment and may lead to a further downgrade of its growth forecasts.

(Source: Fitch Solutions)