Mexico elected 45-year old Enrique Pena Nieto of the Institutional Revolutionary Party (PRI) as its new president early this week. And according to early reports by BBC News,the Wall Street Journal,the Los Angeles Times and the New York Times,among others,the results are likely to bring added prosperity to Mexico in the form of new oil business,increased security and new international investment opportunities.
The BBC wrote that “Pena Nieto said he would stake his administration’s success on ending the state’s monopoly over oil company Petroleos Mexicanos” and that “he has vowed to improve coordination between federal and local police forces to reduce drug-related violence.” In addition,the new president has promised his PRI party will not “return to the past,” referring to its 71-year run that ended in 2000. Instead,the BBC reported he has vowed to govern “with and for all” with a “new style of governing.”
“Mexican Stocks Gain After Widely Anticipated PRI Election Win” was the headline on the Wall Street Journal’s article about Mexico’s election results,which are also expected to bode well for the future of Mexico real estate. In addition,Exxon Mobile’s stock prices are projected to soar thanks to new potential in Mexico,with the oil corporation in serious discussions to work with Pemex,the country’s national oil company. If Pemex concedes resource interests as a way to encourage more foreign investment dollars,large oil producers like Exxon could begin to begin production on unconventional and deepwater assets that are located within Mexico’s borders.
“This Sunday,Mexico won,” stated Pena Nieto according to the L.A. Times. He promised change and to run a government that is “responsible and open to criticism.” As the new leader of the world’s 13th largest economy and a country that is the second-largest trading partner in the world with the US,he is in a position to enact key reforms on energy and put into action steps toward other progressive fiscal policy changes that could spur substantial economic growth for Mexico.