Two major earthquakes hit southern and central Mexico on September 7 and 19, killing at least 340 people and damaging thousands of buildings. The disaster has sparked a public backlash against the political system (in particular the high level of public financing for political parties) which could see the government review its 2018 budget proposals, published on September 8.
The fiscal cost, though substantial, should not dent Mexico's investment grade ratings.
Any popularity boost Pena Nieto might receive due to the government’s swift disaster response will be fleeting.
The army’s performance in the rescue efforts should help improve its tarnished image.
Any more disasters, whether earthquakes, hurricanes or volcanic eruptions could push state funds and logistical capacity to breaking point.
