LatinNews Daily - 12 March 2025

*The World Bank (WB) has released a new report which identifies three key policy areas necessary to reduce poverty in Mexico. These are: “inclusive growth, more efficient social policies, and investment in infrastructure to address vulnerability”. In its report the WB notes that while Mexico has reduced poverty in recent years, this has occurred at a slower pace than other countries with similar characteristics. According to the WB, if Mexico’s per capita GDP grows by 2% annually between 2024 and 2030, poverty would decrease from 21.8% to 15.4%. A 3% growth rate could reduce this figure even further to 13.4%. However, the report highlights that “while faster economic growth is essential for continuing progress in poverty eradication, it is not sufficient on its own”, underlining the need for “inclusive growth” that “generates direct benefits for the most vulnerable sectors”. It identifies as priority areas “integrating more women into the labour market, improving economic conditions in rural households, and increasing formal employment”. As regards social policy, the WB underlines its role in poverty reduction, noting that while programmes in Mexico have achieved “significant progress”, there is more scope to expand their impact. As regards infrastructure to address vulnerability, the WB highlights “the importance of continued investment in physical and social infrastructure to reduce vulnerability, particularly in response to climate change”. It notes that “around one-third of Mexico’s population is exposed to at least one severe climate-related event, posing a risk to progress made in poverty reduction.”