by Andreana Leal
Many citizens are waiting for salvation in Mexico’s financial crisis. They hope that President Enrique Peña Nieto will keep his promise to boost Mexico’s economy.
Peña was elected on December 1, 2012 and has the difficult challenge of dealing with the crisis. He plans to balance the economy by stopping drug cartels all at once, all while managing Mexican crime among other things.
The Mexican Government estimates that these changes could raise annual net growth by 4% to 5%. Three years later, however, the growth remains modest. The economy expanded by 2.1% in 2014 and is projected to grow by 2.3% in 2015. However, the value of the peso is going down.
Citizens are afraid to go down the same path that they did during the December Mistake Crisis in 1994 (also known as the Tequila Crisis or the Mexican Peso Crisis). When the Tequila Crisis occurred, the Mexican peso value was so low that it was incomparable to the American dollar. The crisis was similar to The Great Depression in the United States. Since then, it has been hard to catch up.
Over the recent decades many poor Mexicans have sought to cross the 300 kilometer border with the United States in search of a better future and support for their families.
Immigrant workers who have made it through to the United States send money to their families back home, which has provided useful in improving some of Mexico’s financial problems.
It is difficult to determine how much money to send back to family in Mexico because the value of the peso is always fluctuating. Workers need to send money when the value of the peso is the highest.
Mexican Citizens believe Peña is doing a great job with managing the country’s ongoing battle against organized crime and drug gangs. In 2014, the crime rate was at 53%; in 2015, it dropped to 39%.
Peña has tried to advance new anti-corruption policies in the recent months, but his administration has been shaken by scandals. Over the past few years, allegations including conflict of interest surrounding real estate deals involving his wife, a financial minister and a major government contractor, have surfaced.
Many citizens of Mexico are hoping Peña will resolve the many conflicts in Mexico and improve Mexico in the future.