Link to article: https://mexiconewsdaily.com/news/us-election-spells-more-uncertainty-for-mexican-economy/
Last Monday, due to the pause in the U.S. Congress between Democrats and Republicans regarding the pandemic, the Mexican peso lost its lead up against the US dollar. Predictions surrounding the fate of the Mexican economy after this upcoming U.S. election doesn’t look great.
With Joe Biden polling ahead, the forecasted political stability after a victory for the Democrat party in November had contributed to the rise of the peso recently. Also, another result of stability in the United States also has led to a healthier peso, after President Trump contracted Covid-19. The long-term effects of the U.S. election on the Mexican economy aren’t as clear as the short term.
If Biden were elected as President there would be a return of an “institutionalized” U.S.-Mexico bilateral relationship. “In bilateral politics and after so many trips to Mexico, Joe Biden wants to have a relationship of respect, dignity, and collaboration on issues,” including tackling corruption and promoting transparency, said Roberta S. Jacobson, former U.S. ambassador.
The Mexican economy relies on other economies for success and support. It is relative when the two countries purchase from each other helping each economy. If a certain president is elected if could affect the economy depending on the regulations or propositions the candidate surrounding the economic relationship between Mexico and the U.S. Trump and Biden have different approaches to the involvement in the Mexican economy making long-term effects on the economy unclear. Since the U.S. and Mexico are each an important contributor to both economies so depending on how either candidate handles the relationship plans the outcome could be good or bad, again the long-term effects are unclear.