What the new airport’s cancellation, the strengthening of Pemex, and the energy-market reform tell us.

Mexico is going through a complex scenario, both in its internal and external environment. Last year was one of the most complicated ones for the Mexican peso. And things remain unclear for 2017: external factors influenced mainly by the US electoral process and its outcome have compromised Mexico’s economic performance.

The main problem arises when a government deficit comes with a primary balance deficit. The primary balance is the difference between government revenue and expenses, without taking into account the cost of the debt (interests).

Mexico’s position and its depreciated currency is not unique in the world; since 2014 Japan has also lost about 28% of the yen’s value against the dollar and its exports have fallen around 10% since.