LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

September 3, 2025

Will Mexico’s Poverty Rate Keep Declining?

Mexico’s poverty rate fell between 2022 and 2024, but a third of Mexicans are still impoverished. The Matamoros neighborhood of Tijuana is pictured. // File Photo: Matt Gush via Adobe Stock.

Q

A

Susan W. Parker, professor in the School of Public Policy at the University of Maryland: “The large declines in measured poverty between 2022 and 2024 in Mexico are based on the income and socioeconomic conditions reported by the population in the Survey of Income and Expenditures. The reduction in poverty largely reflects an increase in real labor income of Mexican households, potentially helped by increases in the minimum wage. However, some analysts have argued the estimates are not credible and suggest that at least part of the reduction might be due to INEGI improving its measurement of capturing labor income rather than real increases. Even if these poverty increases are real, an important caveat is the reduction in real government spending on education and health, which occurred during López Obrador’s administration. Further, several prominent programs targeted to the poor and uninsured were rolled back….”

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