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World Bank Backs Mexico’s Poverty Drop, Warns Gains at Risk Without Stronger Growth

The bank says sustaining recent gains hinges on inclusive, productivity‑raising policies backed by reliable social‑program funding.

Overview

  • Samuel Freije–Rodríguez told a Senate forum that the World Bank’s poverty estimates align with INEGI’s recent figures despite using a different methodology.
  • He identified Mexico’s persistently weak long‑term GDP growth as the principal threat to maintaining the recent reduction in poverty.
  • Recommendations focused on inclusive growth that formalizes employment, expands opportunities for women and youth, and boosts agricultural productivity.
  • Social transfers were credited with driving gains, with the caveat that durable results require stronger fiscal capacity from a larger, more robust economy.
  • Short‑term prospects remain subdued, with Banxico’s survey pointing to roughly 0.18% growth in 2025 and the OECD at about 0.4%, which coverage links to trade frictions, tighter financial conditions, and low investment.