Mexico’s Historic Leadership Transition Mexico elected its first female president, Claudia Sheinbaum, who succeeds populist and former president Andres Manuel Lopez. The public eagerly awaits the changes Sheinbaum’s government will bring to this dynamic economy. Economic Growth and Challenges Under former president Andres Manuel Lopez, Mexico achieved significant poverty reduction despite divisive policies. With a GDP growth of 2.4%—amounting to $2.017 trillion Nominal GDP and $3.434 trillion GDP on Purchasing Power Parity as of 2024—President Sheinbaum is expected to accelerate programs to propel Mexico’s economy further. Security Issues and Gang Violence Mexico faces severe security challenges, including murder, armed robbery, sexual assault, kidnapping, drug-related violence, and extortion. Drug trafficking and inter-gang fighting dominate major areas, particularly border entry points, making small businesses vulnerable to extortion—a problem that has increased by over 60% since 2022. Impact on Small Businesses and Investment The violent environment poses significant risks for small businesses, pushing investors away from the country. The spread of gang control across Mexico could hinder President Sheinbaum’s ability to achieve her goals effectively, requiring stringent government actions to tackle crime rates. Organized Crime and Political Violence Mexico has become increasingly dangerous for political candidates and officials, who are often targeted by organized crime groups. Recently, the mayor of Chilpancingo, Guerrero’s capital, was murdered just six days after Sheinbaum took office, highlighting the urgency of addressing gang violence. President Sheinbaum’s Focus on High-Crime Areas In her initial efforts, President Sheinbaum aims to reduce crime rates by targeting areas with high homicide rates linked to organized crime, such as Colima, Tijuana, Acapulco, and Celaya. These regions account for a quarter of the country’s organized crime-related homicides. Expectations for Women in Leadership President Sheinbaum has emphasized the importance of women demonstrating their leadership capabilities. As she tackles gang violence, her approach will require restraint to avoid exacerbating inter-gang conflicts and further crime rates.