October 4th, 2024
1. Claudia Sheinbaum, Mexico’s first female President
In front of the Legislative Branch, the Judicial Branch, upcoming secretaries of state and state governors, as well as the representation of more than 100 nations, including the presidents of Cuba, Brazil, Honduras, Chile, Belize, Bolivia, Colombia, Guatemala, among others, Claudia Sheinbaum Pardo was sworn in as President of the United Mexican States, becoming the first woman in the history of Mexico (and North America) to hold such office.
In her first speech to the nation, President Sheinbaum highlighted the feminist struggle, which led her to win the highest political office in the country, as well as listed the principles of her government and called on the business sector to have confidence to invest in the country. Among her first government actions, she sent to the Senate a package of initiatives to guarantee substantive equality, a gender perspective and the right to a life free of violence for women, as well as going to the State of Guerrero to help those affected by natural phenomena.
Gobierno de México: Presidenta Claudia Sheinbaum presenta reformas constitucionales para proteger y ampliar los derechos de las mujeres
2. Mexican economy growth expectations adjusted downward
The Organization for Economic Cooperation and Development (OECD) significantly reduced its growth forecasts for the Mexican economy, which it estimated at 1.4% this year and 1.2% in 2025. The eight-tenths reduction is the largest cut for the organization’s countries and was driven by the moderation of domestic demand and the slowdown of the US economy.
In the same sense, BBVA Mexico reduced its growth forecast for the Mexican economy, placing it at 1.2% for this year, from the previous 2.5%, with clear indicators of lower manufacturing activity, which has also been reflected in a drop in job creation, as well as the uncertainty resulting from the reform of the Judiciary.
El Economista: Recorta OCDE expectativa de crecimiento para éste y el próximo año en ocho décimas
El Universal: BBVA prevé menor crecimiento para México; en 2025 sería inferior a 1% si no disminuye incertidumbre por reforma judicial
3. Bank of Mexico reduces interest rate
The Bank of Mexico (Banxico) informed that, by majority vote, its Board of Governors decided to reduce the Overnight Interbank Interest Rate by 25 basis points, from 10.75% to a level of 10.50%. This was due to the behavior of headline inflation, which decreased from 5.57% in July of this year to 4.66% in the first two weeks of September, as well as the signs of core inflation, which maintained its downward trend and stood at 3.95%, with which inflation is expected to converge to the 3% target in the fourth quarter of 2025. The decision was also influenced by the U.S. Federal Reserve’s reduction of 50 basis points in its interest rate.
Forbes: Banxico reduce tasa de interés a 10.50%
4. Court agrees to study whether it can analyze the reform of the Judicial Branch
With eight votes in favor and three against, the plenary of the Supreme Court of Justice of the Nation (SCJN) approved the project of Minister Juan Luis González Alcántara, who stated that the High Court may give entry to one of the complaints against the constitutional reform to the Judicial Power, which implies that the Court will study whether or not it may analyze the validity of the reform; that is, it will first review whether it has the power to, if necessary, amend or declare the reform to the Judicial Power invalid. Although the resolution of the case is still pending, for which 6 votes in favor are needed, female ministers sympathetic to the reform promoted by former President López Obrador have pointed out that this is a baseless attempt to overturn the reform and that the Court does not have the power to do so.
El Financiero: ¿Última ‘bala’ vs. reforma judicial? Suprema Corte ‘abre la puerta’ a analizar controversia constitucional
5. Morena and allies monopolize legislative committees in the Senate
Making use of their legislative majority, Morena and its allies will preside 42 of the 63 legislative committees, divided by subject matter, that make up the Senate of the Republic, thus ensuring greater control of the legislative agenda, due to the powers of the committee presidencies, which decide how and when an initiative of interest is approved. Many of the committees they will chair are key for the transition of the new government, such as Constitutional Points, Economy, Energy, Agriculture, Justice, National Defense, Human Rights, Education, Health, Government, and Finance and Public Credit, among others. On the other hand, the opposition parties will preside: PAN, 10; PRI, 7; and MC, 5. In the case of the Chamber of Deputies, the same case is expected; however, factions within Morena have prevented the distribution of committees from moving forward.