Mexico Programas para el Bienestar Remesas

Social Programs and Remittances Strengthen Mexico’s Economy

Social programs and remittances strengthen Mexico’s economy; transfers from paisanos reach a record in 2022, affirmed President Andrés Manuel López Obrador during a press conference on February 2nd.

The Mexican president declared that the Social Programs and Remittances contribute to the absence of a consumer crisis in the country; “They help,” he said, so that families “have at least the basics, for food.”

In a morning press conference, he argued that the combination of both factors maintains economic stability because “having the capacity for consumption, benefits commerce which in turn, benefits industry. This invites foreign investment, which brings in better paid jobs and the greatest benefit to those who do not receive something directly from the budget: Peace. They can live in a country where there is peace.”

 

Social Programs and Remittances Strengthen Mexico's Economy
Well-being programs and remittances strengthen Mexico’s economy; remittances to Mexico hit a record in 2022. Image Credit: Gobierno de Mexico.

 

Remittances Reach Historic Levels

While 25 million people, out of 35 million families in Mexico, access a minimum of support from the Government, the arrival of remittances reached a historic level of 58 thousand 497 million dollars at the end of 2022; that is 13 percent more compared to 2021, highlighted the president.

 

 

“Thank you very much, paisanos (fellow country men and women). We are in second place in global remittances. We were in third: it used to be India, China and Mexico. Now, it is India, Mexico and China,” he expressed.

“They (fellow country men and women) leave out of necessity to find a life and they don’t forget their families or their country. This isn’t the case, everywhere. And I say this will all due respect. The solidarity of Mexico is unique. We are a fraternal, loving people. It has to do with our cultures, with the deep roots of Mexico, of our ancient cultures,” he added.

 

Social Programs and Remittances Strengthen Mexico's Economy
Contribution of food and electrical components to inflation in Mexico and the U.S. in December, 2022. Image Credit: Gobierno de Mexico with data from INEGI and US Bureau of Labor Statistics.

 

 

Social Programs and Remittances Strengthen Mexico's Economy
Purchase of basic food basket in kilos. Purchasing power with minimum salary of 2023. Type of products: beans, eggs, tortillas. Image Credit: Gobierno de Mexico with data from CONSAMI.

 

When presenting the socioeconomic results as of January 31, Mexico’s Chief Executive pointed out that the jobs registered with the Mexican Social Security Institute report a record number of 21 million 484 thousand 595, that is, 871 thousand 59 more jobs than in February of 2020. The average monthly salary of the workers registered with the IMSS stands at 14 thousand 802 pesos ($ 792.07).

 

Social Programs and Remittances Strengthen Mexico's Economy
Price of the Mexican export mix in the six-year term. Informative estimate in dollars per barrel. Image Credit: Gobierno de Mexico with data from Pemex.

 

 

Social Programs and Remittances Strengthen Mexico's Economy
Evolution of real gasoline price, Magna. Annual average for actual prices. Image Credit: Gobierno de Mexico with data from Profeco.

 

The minimum daily wage rose to 207.4 pesos ($11.10), a 90 percent increase in purchasing power compared to 2018; In December 2022, the money reached families to buy up to 10.1 kilograms of tortillas, 5.1 of beans, and 4.7 of eggs.

The president indicated that opportunities reduce the incidence of crime and political stability generates confidence abroad, proof of this is that the peso is one of the most appreciated currencies in the world compared to the dollar with 7.5 percent since the beginning of the current six-year term.

 

“Opportunities reduce the incidence of crime and political stability generates confidence abroad,”

President Andrés Manuel López Obrador

 

Mexico is positioned in a better outlook in terms of Gross Domestic Product (GDP) growth compared to South Korea, the United States, Germany and Italy. In 2022 the record was 3 percent, said López Obrador.

“We are already like before the pandemic and we have two years left. If we manage to grow three percent —as in 2022—, (in) 2023 and 2024, we would have an average of one percent growth over the six-year term, despite the pandemic. With that I think, it is a feat,” he said.

 

Social Programs and Remittances Strengthen Mexico's Economy
Yearly inflation per country, December 2022. Compared to previous year, same month. Image Source: Gobierno de Mexico, source: CPI, OCDE.

 

Social Programs and Remittances Strengthen Mexico's Economy
Yearly Inflation. Image Credit: Gobierno de Mexico.

 

Social Programs and Remittances Strengthen Mexico's Economy
Registered jobs with IMSS. Jobs in the millions. Image credit: Gobierno de Mexico.

 

Social Programs and Remittances Strengthen Mexico's Economy
Average salary. Image Credit: Gobierno de Mexico.

 

Social Programs and Remittances Strengthen Mexico's Economy
Change variations in terms of the dollar. Image source: Gobierno de Mexico.

 

The president predicted that inflation will drop as a result of the efforts of the federal government and the collaboration of producers, distributors, and businessmen to control the food component, which has been the one with the greatest increase because Mexico is on the way to reaching food self-sufficiency. As of December 2022, the registered annual inflation was 7.82 percent.

 

Social Programs and Remittances Strengthen Mexico's Economy
Change variations respective of the dollar at 50 months of government. Image source: Gobierno de Mexico with Bloomberg data.

 

Social Programs and Remittances Strengthen Mexico's Economy
PIB growth, 2022. Image credit: Gobierno de Mexico.

 

Social Programs and Remittances Strengthen Mexico's Economy
PIB growth per year. Image credit: Gobierno de Mexico.

 

 

This administration promotes the development of the countryside, particularly the production of corn, beans, rice and wheat, through measures aimed at reducing the prices of these foods, such as guaranteed prices and the free delivery of fertilizers.

The price of the Mexican export mix as of January 31 was 68.66 dollars per barrel. Magna gasoline lowered its average price by 7.3 percent during this administration; Premium, 5.2 percent and diesel, 6.5 percent, as well as cylinder LP gas, which reduced the cost by 16.3 percent.

Source: Conferencia de Prensa, Lopez Obrador

 


Dr. Soledad Quartucci | Founder

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