Economics: Survey Hints at Lower Poverty

MEXICO - Report 11 Sep 2017 by Mauricio Gonzalez and Esteban Manteca

Mexico’s National Statistics Institute updated our understanding of trends in household income and spending, as well as the dynamics of poverty, with the release of its bi-annual National Survey of Household Income and Spending (ENIGH). Unfortunately, the latest report, which was based on data collected in 2016, is not comparable to its predecessors, owing to changes made to the way the surveys were conducted and recorded, especially in relation to household incomes.

A breakout of data per income decile underscores the extent of inequality in the country, with the highest decile taking in 20 times what those in the lowest decile live on. Households in the first decile received 1.8% of total national current income, and those in the tenth decile 36.3%. The 30% of people with the lowest incomes accumulate 8.9% of total current incomes, and the 30% with the greatest incomes accumulate 63.3%. The geographic disparities are stark as well, with a household in Nuevo León making four times more than one in Chiapas (those of Nuevo León reported a quarterly average of 87,653 pesos, or just under 5,000 dollars, with Chiapas at only 23,258 pesos).

Fortunately, results based on multidimensional poverty readings showed reductions, both in percentage and absolute terms, in the population living in conditions of either moderate or extreme poverty, although there were marginal increases in those experiencing vulnerable social conditions. Those living above the poverty line and regarded as non vulnerable grew from 20.5% of the population in 2014 to 22.6% last year.

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