Economics
U.S. Stimulus Is Delivering the Cash to Mexicans That AMLO Won’t
- Boom in Mexican exports, remittances driven by U.S. spending
- Domestic demand has shriveled as president withheld budget aid
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Andres Manuel Lopez Obrador came to power promising to make Mexico’s economy less dependent on its giant northern neighbor. His pandemic policies are having the opposite effect.
The Mexican president has run one of the world’s most austere budgets through the Covid-19 crisis, declining to borrow extra money as the economy slumped. The stimulus that prevented an even deeper recession, and is set to drive a rebound this year, is coming from the U.S. instead.
Mexico has benefited in two key ways from the U.S. pandemic spending, which is set to pass $5 trillion with the Biden administration’s new bill.