El Justo Reclamo

Mexico
Country overview
First Quarter 2008

The Economist Intelligence Unit Limited

*Eighteen months into his six-year term, the president, Felipe Calderón, has just a small window of opportunity to advance a controversial energy reform before attention focuses on the 2009 mid-term election.
*A high level of violence stemming from organised crime represents a serious challenge to Mexico's deficient security forces. Mr Calderón's authority will be partly dependent on his ability to achieve improvements in this area.
*Rising oil revenue will facilitate a countercyclical increase in expenditure in 2008 without jeopardising the fiscal balance. However, energy reform to raise oil output will be needed to contain contingent liabilities in the longer term.