Mexico reduces poverty, but the World Bank warns of slow economic growth

The World Bank (WB) has recognized historic progress in poverty reduction in Mexico. However, it warns that maintaining this trend requires stronger and more sustained economic growth.

During the forum "New Perspectives on Poverty and Inequality," organized by the Senate of the Republic, Samuel Freije-Rodríguez, Lead Economist of the World Bank's Global Poverty Practice, noted that recent data confirm the reduction in poverty in Mexico.

"Our main assessment is that there has been a significant reduction in poverty thanks to effective labor measures and social policies," Freije-Rodríguez said, acknowledging that the figures coincide with data from the National Institute of Statistics and Geography (INEGI).

The policies implemented in recent years, especially social programs focused on education, health, and cash transfers, have been key to achieving this progress.

Despite progress in poverty reduction, the World Bank emphasized that the real challenge is economic growth. Mexico has historically had low rates compared to other economies, and although there is a post-pandemic recovery, the World Bank believes a greater and sustained boost is needed.

"The challenge is to continue expanding what has been achieved, and that requires not only maintaining social policies, but also economic growth," the economist explained.

Freije-Rodríguez highlighted several areas of opportunity to strengthen the Mexican economy:

1. Inclusive growth: Creating more employment opportunities, especially for women and young people.
2. Formalization of employment: Consolidate formal employment, with better conditions and rights.
3. Focus on the agricultural sector: Improve productivity and opportunities for rural populations living in poverty.
4. Fiscal sustainability of social programs: Support programs with robust financing that depends on a larger, stronger economy.

These measures seek not only to maintain poverty reduction, but also to ensure that progress is sustainable over the long term.

The World Bank's message is clear: Mexico has made significant progress in reducing poverty, but to consolidate these gains and improve the population's quality of life, it is essential to implement strategies for sustainable, inclusive, and equitable economic growth.

“Smart policies have yielded results, now we must ensure that these achievements continue to grow,” concluded Samuel Freije-Rodríguez.