Claudia Sheinbaum Sworn In as Mexico's First Woman President Amid Economic Challenges

Claudia Sheinbaum, inaugurated as Mexico's first woman president, faces multiple economic challenges, including combating violence, addressing the fiscal deficit, and reassuring investors. The former Mexico City mayor aims for stability while navigating judicial reforms and potential market volatility due to upcoming US elections.

Claudia Sheinbaum was sworn in as Mexico's first woman president on Tuesday, taking the reins at a time when the country is grappling with organized crime-related violence and a significant fiscal deficit in Latin America's second-largest economy. The 62-year-old scientist and former Mayor of Mexico City was inaugurated in Mexico's Congress for a six-year term ending in 2030. Lawmakers applauded as her supporters chanted 'President! President!' and 'Long live Mexico!' following her oath of office.

Political analysts predict Sheinbaum will urgently seek to calm investors after a controversial judicial reform passed by her predecessor, Andres Manuel Lopez Obrador. Alberto Ramos, head of Goldman Sachs Latin American economic research, emphasized the need for 'a predictable and investment-friendly policy,' focusing on budget discipline, public security, and the integrity of key institutions like state energy firm Pemex.

Sheinbaum inherits a hefty budget deficit and sluggish economic growth, which experts suggest will necessitate tax reforms despite her public stance against sweeping changes. She aims to improve tax collection efficiency and faces the challenge of fiscal consolidation, maintaining market confidence amid a weaker economy. The administration also confronts Pemex's significant debt and the complexities of foreign direct investment amid judicial reforms and possible US-Mexico trade tensions.

(With inputs from agencies.)