Dora Villanueva
La Jornada newspaper
Thursday, April 24, 2025, p. 16
Mexico is the economy of Latin America and the Caribbean where the reduction of poverty has been accelerated in recent years, the world Bank (BM) reported, while making its perspectives of zero growth for the country this year and 1.1 percent in 2026.
In an advance of its economic report from Latin America and the Caribbean (Lacer), the agency showed that Mexico recorded the greatest decrease in poverty from 2018 to 2023, a decrease of around 7 percent, the widest in the region.
This fall, according to the study of the BM, was due to the social programs of transfers, but a proportion almost three times greater than the increase in labor income, especially among those who earn less.
The World Bank showed that the decrease in poverty in the country was largely the result of the improvement of labor markets; and was accompanied by an average increase of 6 percentage points in the real salary. However, the informal private sector predominates in the country, this is added few advances in productivity.
A day after the International Monetary Fund (IMF) reported that, according to its projections, the Mexican economy will fall 0.3 percent this year and see a rebound of 1.4 percent next (Bit.ly/3ykph73), the World Bank launched its own adjustments.
Similar to what was reported by the IMF, the World Bank sees in Mexico one of the worst growth scenarios for this year in Latin America and the Caribbean. Except Haiti, which would see a 2.2 percent reduction in its gross domestic product (GDP), the Mexican economy goes to a null advance, the lowest in the region.
In the advance of the Lacer, the agency said that Latin America will grow 2.1 percent this year and 2.4 percent in 2026, which makes it the region of lower growth at a global scale.
Low investment, high indebtedness and a changing external environment constitute important obstacles to the development of the region
the BM pointed out.
Carlos Felipe Jaramillo, vice president for Latin America and the Caribbean of the BM, emphasized that The world economic scene has changed dramatically, marked by higher levels of uncertainty
And, in this context, countries must go for strategies and reforms that promote productivity and competitiveness, while addressing persistent gaps in infrastructure, education, trade and governance
.
Nearshoring, uncertain, but not dying
According to the data recovered by the agency, no country in the region has as dependence on exports as Mexico, since they exceed more than a quarter of its GDP; Different productive sectors are tied to them, depending on the destination. For example, more manufactures are sent to the United States, while sales to China are mainly composed of minerals and fuels.
In the midst of global uncertainty, promoted by changing commercial policies, the agency recommends to all countries diversify commercial destinations, as well as expanding service exports.
“The project of nearshoring It is not necessarily dying, although it is certainly much more uncertain. With the main Asian competitors under strong tariffs, Mexico and Latin America and the Caribbean in general seem more attractive, ”says Lacer.
