Claudia Sheinbaum has completed her first year as president of Mexico with approval ratings near 70%, buoyed by job creation, expanded social programs, and record-setting foreign investment. Her pragmatic approach to dealing with U.S. President Donald Trump—described as “a cool head and no confrontation”—helped her secure tariff relief and a landmark agreement on arms trafficking, strengthening her image as a steady negotiator.

At home, Sheinbaum has made social rights central to her agenda, raising the minimum wage by 12% and elevating welfare programs to constitutional guarantees. These policies have eased poverty for many, though critics warn they lack long-term financial sustainability. With no fiscal reform in place, funds have been diverted from health, education, and infrastructure to maintain the programs, all while Mexico faces a 5% fiscal deficit and sluggish GDP growth of just 1%.

Her government’s congressional majority allowed her to pass sweeping reforms, most notably a judicial overhaul in which all judges, justices, and magistrates were replaced by popular vote. While the administration celebrated the move as democratic, experts warn it may weaken judicial independence and concentrate power in the executive’s hands.

On security, Sheinbaum touts a 25% reduction in homicides, crediting the National Guard and closer coordination between prosecutors. Yet insecurity remains the public’s biggest concern. Organized crime has diversified, with disappearances and extortion on the rise, leaving many Mexicans unconvinced that the country is truly safer.

As Sheinbaum heads into her second year, she faces a delicate balancing act: maintaining social gains while addressing fiscal strains, strengthening the rule of law without eroding institutions, and proving that progress on security extends beyond homicide statistics.