MEXICO CITY: Claudia Sheinbaum was sworn in as Mexico’s first female president on Tuesday, pledging to strengthen women’s rights and maintain Mexico’s status as a safe destination for international investment.
At 62, the scientist and former mayor of Mexico City took the oath of office in a lively ceremony at Mexico’s Congress, marking the beginning of her six-year term.
“It’s time for transformation, it’s time for women,” Sheinbaum declared emotionally. “I’m a mother, a grandmother, a scientist, and a woman of faith, and today, by the will of the Mexican people, I am the president.”
In her first address as head of state, Sheinbaum aimed to reassure investors following a controversial judicial reform passed by her predecessor, Andres Manuel Lopez Obrador. She emphasized that the central bank would remain independent and guaranteed that investments from both domestic and foreign shareholders would be secure.
Alberto Ramos, head of Latin American economic research at Goldman Sachs, stated that Sheinbaum’s success would depend on whether she can create a stable, investment-friendly regulatory environment. He stressed the importance of disciplined fiscal management, improved public security, and protection of key institutions, particularly state-owned oil giant Pemex, which carries significant debt.
Sheinbaum committed to maintaining Pemex’s oil production at 1.8 million barrels per day, consistent with current levels. She also acknowledged that the upcoming U.S. presidential election, with Donald Trump potentially returning to office, could create market uncertainty due to his vow to raise tariffs on Mexican imports.
Mexico’s new government will submit its first budget by November 15, which will be scrutinized to see if Sheinbaum can meet her pledge to reduce the fiscal deficit to 3.5% of GDP, down from the 5.9% expected at the year’s end.
In a speech later that day at Mexico City’s historic Zocalo square, Sheinbaum made 100 promises, ranging from expanding public healthcare and education to building 1 million new homes, controlling the prices of essential goods, and introducing reforms aimed at combating gender violence and discrimination. She announced plans to unveil the legislative package on Thursday, which will propose constitutional changes to reduce impunity and protect women in a country with one of the world’s highest femicide rates.
“Our guide is the happiness and wellbeing of the people,” she said, vowing to “continue making history.”
Continuity with Change
Sheinbaum’s predecessor, Lopez Obrador, who began his term in 2018, achieved notable successes, including raising the minimum wage, reducing poverty and unemployment, expanding social programs, and strengthening the peso. His popularity helped propel Sheinbaum, his protégé, to a decisive victory in the June elections. Mexican presidents are limited to a single six-year term.
Though Sheinbaum has promised “continuity with change,” she inherits the largest budget deficit since the 1980s and sluggish economic growth. Experts suggest that Mexico will need tax reform to boost revenues, but Sheinbaum has ruled out a comprehensive tax overhaul for now, instead focusing on improving tax collection efficiency at customs.
Bernardo Keiserman, an economist at Bradesco BBI, noted that Sheinbaum will need to deliver significant fiscal consolidation to maintain positive market sentiment, but this will be challenging in a weakening economy. Mexico’s central bank recently lowered its growth forecast for this year to 1.5% from 2.4% and reduced its projection for 2025 to 1.2%.
While nearshoring has helped attract investment, Sheinbaum faces the challenge of increasing foreign investment while implementing the judicial reform, which includes electing judges by popular vote. This reform has raised concerns among investors and drawn criticism from the U.S. ambassador to Mexico, who warned it could undermine the rule of law.
“I will govern for all, and rest assured that I will dedicate my knowledge, strength, history, and even my life to the service of the people and the country,” Sheinbaum said.
