Political Risk: Mexico's AMLO strives for prudent populism, but markets need convincing

18 April 2019

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Mexican President Andrés Manuel López Obrador (commonly referred to as AMLO) was elected in July 2018 with over half the popular vote, and took office on 1 December. With strong public support and his National Regeneration Movement (MORENA) holding a majority in both houses of Congress and two thirds of state legislatures, he has the political capital to pass economic and social reforms promised during his campaign. Elected on a populist platform promising to fight corruption, violence and inequality, his first initiatives have included efforts to stop fuel theft at state-owned Pemex, cap public-sector salaries, and create a new national guard to fight organized crime.