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Mexico has experienced significant transformation following initiatives undertaken by the Mexican Federal Government during the last two presidential administrations. Through a combination of social programmes and legal and policy reforms, the living conditions of millions have improved. This has occurred without a significant increase in public debt and with federal tax rates remaining largely unchanged.
One of the most relevant indicators for evaluating the success of these policies is the measurement of poverty levels. According to Mexico’s National Council for the Evaluation of Social Development Policy (CONEVAL), between 2020 and 2022 the number of people in poverty decreased from 51.9 million to 46.8 million, a reduction of approximately 5.1 million individuals. The percentage of the population living in poverty declined from 43.9% to 36.3%.
Key factors for these changes include the strengthening of social programmes and increased labour income. Programmes such as the Pension for the Wellbeing of Elderly Persons, the Women's Well-Being Pension, and the Welfare Support Programme for Children of Working Mothers, among others, have expanded their coverage in recent years, improving income for millions of households.
Regarding fiscal policy, unlike many countries across the Americas, Mexico has not implemented structural reforms involving generalised increases in Income Tax (ISR) or Value Added Tax (VAT). Nevertheless, tax revenues have reached historic highs in recent years, driven primarily by greater administrative efficiency, digitalisation of tax processes, and strengthened enforcement mechanisms by the Tax Administration Service (SAT).
The government's strategy has prioritised combating tax evasion and incorporating taxpayers into the formal economy, allowing public revenues to increase without significantly modifying existing tax rates. Federal Government revenues grew from approximately four trillion pesos in 2019 to more than six trillion pesos in 2025, a cumulative growth of nearly 50% over six years that has contributed to maintaining fiscal stability while financing various social programmes and infrastructure projects.
Perhaps the most profound changes have occurred in the labour sector. For decades, Mexico ranked unfavourably among member countries of the Organisation for Economic Cooperation and Development (OECD) regarding minimum wages, working hours, and work-life balance. In response, several reforms have been implemented to strengthen workers' rights.
In 2018, the general minimum wage was MXN $88.36 per day; by 2025, it had reached MXN $278.80 per day, representing one of the most significant wage recovery processes in the country's recent history. This cumulative increase of more than 215% has improved the purchasing power of millions without having an adverse impact on inflation, which remains at low levels.
These measures have been accompanied by the expansion of the statutory minimum vacation period from six to twelve days for employees who complete one year of service, the regulation of subcontracting (outsourcing) schemes, provisions designed to promote substantive equality between women and men in the workplace.
Additionally, Mexico is currently undertaking the gradual implementation of a reduction in the standard workweek from 48 to 40 hours. This initiative represents one of the most significant labour reforms in recent decades and aims to strengthen work-life balance while bringing Mexican labour legislation closer to international standards for developed economies.
These modifications reflect a broader trend toward modernising Mexican labour legislation and aligning it with international standards that prioritise dignity at work, occupational health, equal opportunities, and the overall well-being of workers.
Contrary to concerns often raised regarding the potential impact of these reforms on economic competitiveness, investment indicators have shown a positive trend. Mexico has registered historically high levels of Foreign Direct Investment (FDI), driven by factors such as macroeconomic stability, trade integration with the United States and Canada, and the country's growing manufacturing capacity.
According to the Ministry of Economy, foreign direct investment increased from USD 31.6 billion in 2021 to USD 40.8 billion in 2025, a growth of more than 29% in four years.
This suggests that improving labour and social conditions is not necessarily incompatible with attracting investment. On the contrary, a population with higher incomes, better working conditions, and stronger social protections contributes to strengthening the domestic market, increasing productivity, and creating a more attractive environment for long-term investment.
Mexico's recent experience demonstrates that strengthening labour rights and expanding social programmes can coexist with macroeconomic stability, higher tax revenues, and substantial inflows of foreign investment. Although challenges remain, the available evidence suggests that social well-being and economic competitiveness can reinforce one another.
Another relevant aspect has been the evolution of public security indicators. Intentional homicide rates decreased by approximately 42% between September 2024 and January 2026, falling from a daily average of 86.9 victims to 50.1 victims. This downward trend was reflected across most federal entities, representing a reduction of approximately thirty-six homicides per day. These results suggest significant progress in institutional efforts aimed at strengthening peace and social stability, essential factors for promoting economic development, attracting investment, and improving living conditions.
At the same time, the Federal Government has promoted a series of strategic infrastructure projects intended to strengthen competitiveness and regional development: the Mayan Train, which connects the principal tourism and economic hubs of southeastern Mexico through a railway network exceeding 1,500 kilometres, and the Interoceanic Corridor of the Isthmus of Tehuantepec, conceived as a logistical alternative for global trade by connecting the Pacific and Atlantic Oceans, efforts complemented by various railway, highway, and logistics projects designed to improve national connectivity, facilitate the movement of goods and people, and generate employment opportunities.
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