Mexico Seen at Least Risky Level Since 2014, Even as Economy Sputters

Low inflation, tight public spending and a reduction in the vast debts of loss-making state oil giant Petroleos Mexicanos (Pemex) have helped spruce up Mexico’s so-called risk profile, which reached its “safest” level in five years this month, Reuters reported. Risk premiums of investing in Mexico, as measured by traders in credit default swaps (CDS), hit their lowest level since November 2014 despite business and investor concerns about the economic management of the leftist government. Economic growth has ground to a halt during the first year in office of President Andres Manuel Lopez Obrador, who has repeatedly castigated excessive free market liberalism for ruining Mexico. Analysts expect growth to be weak next year too. Read more