They warn of peso weakness

MEXICO CITY (El Universal).— Specialists from the French credit insurance firm (Coface) considered that the Mexican peso may register a depreciation due to the volatility that could occur after the presidential elections in Mexico and the United States.

In the videoconference “The North American Economy 2024”, Coface’s chief economist for Latin America, Patricia Krause, commented that “Mexico expects a depreciation of its currency. We have to wait for the elections in the country, this can bring volatility to the currency and the numbers indicate that there is a big difference between the two candidates in first and second place, (Claudia Sheinbaum and Xóchitl Gálvez), this influences the same in the United States” .

He added that elections in both countries can also impact interest rates, although he also commented: “I don’t know if we have the same scenario in 2016 when Trump won for the first time.”

He said that they expect lower growth for 2024 in the Latin American and Mexican economies, for example, Mexico’s growth is projected at 2.5% after 3.2% in 2023.

The economist for North America and the head of political risk analysis at Coface, Ruben Nizard, commented that in the United States there is also a scenario of great uncertainty because the two presidential candidates, Joe Biden and Donald Trump, have low approval rates so that undecided and independent voters will define the elections.

He added that the US economy is on track to have a soft landing, as inflation is declining and although the economy appears strong, financial conditions are restrictive.