Key View

• We expect a more aggressive tightening of regulations for private fuel distributors in Mexico in light of Pemex' struggle in both the upstream and downstream segments, exacerbated by the recent oil price rout, decline in production and the drop in fuel demand amid the Covid-19 pandemic.
• The Lozoya corruption allegations are also

Key View

• Recent developments point to significant policy shifts from Mexico’s government toward the development and operation of the country’s port infrastructure.
• In our view, a shift toward greater military involvement in port management and threats to alter the concession agreement for the port of Veracruz will drive elevated uncertainty

Key View

• Further food and drink regulation is planned by the Mexican authorities, with the state of Oaxaca announcing on August 5 that it would ban the sale junk food and sugary beverages for children.
• This move comes as a front-of-package labelling law is due to implemented nationwide in October 2020.
• We believe Covid-19 and its high

Key View

• The effectuation of the US-Mexico-Canada Agreement (USMCA) will compound the existing factors supporting Mexico as a beneficiary of automotive supply chain diversification.
• Mexico's comparatively attractive operating environment and proximity to the US and Canada inform our assessment that it will benefit from a reallocation of

Key View

• Restrained government spending due to the economic impact of Covid-19 in Mexico will accelerate the trend of pharmaceutical cost containment.
• Government efforts will boost the uptake of low-value generic medicines where possible.
• The need for a more sustainable expenditure within public healthcare reimbursement schemes will threaten

Key View

• The Tren Maya and Tren del Istmo rail projects have seen growing momentum in recent weeks, as construction works have ramped up, supported by robust public funding from Mexico’s government.
• Backed by public support, we expect the projects will see major progress over the coming quarters, preventing a more substantial downturn in rail

Key View

• Mexico’s consumer outlook will contract significantly in 2020 due to the impact of Covid-19, with real household spending projected to decline by -6.1% for the year, a revision down on the 2.0% y-o-y growth we forecast for 2020 in the pre-Covid-19 environment.
• The food and drink sector is projected to remain somewhat shielded from

Despite the relative size of its bourse and the stock exchange arena in the Latin America (LatAm) region, the Mexican Stock Exchange (Bolsa Mexicana de Valores) has consistently struggled to attract new listings over the last couple of years. In our view, the launch of the exchange’s first new float in over two years has reminded investors of the