Mexico is set for major budget cuts that may drag on growth, despite the resignation of Finance Minister Luis Videgaray, who was the driving force behind the 2017 fiscal plan.
His resignation was confirmed on Wednesday and came after the unpopular visit of Republican presidential candidate Donald Trump to Mexico, for which Videgaray was seen as to blame.
"Donald's Trump meeting with the Mexican president last week, which has widely been seen as a PR disaster, was reportedly Mr. Videgaray's idea," Adam Collins, Latin America economist at Capital Economics, said in a report on Wednesday.
Videgaray was well respected and had served as finance minister since the installment of President Enrique Peña Nieto in December 2012. His departure came at an inopportune time, with the 2017 budget due to be introduced to Mexico's congress later on Thursday. He had pushed for fiscal consolidation in the wake of a hit to public finances from lower oil prices.