She highlighted falling poverty, historic wage hikes, and output growth.

On Monday, Mexican President Claudia Sheinbaum said her country is consolidating a new economic model that places it as the second nation with the lowest inequality in the Americas, despite global tariff tensions and the “catastrophic expectations” of international organizations.

RELATED:

Mexico Confirms Meeting with Marco Rubio to Formalize Security Agreement

“We are consolidating a new economic model that guarantees macroeconomic stability while promoting shared prosperity with fair wages and social programs,” the Mexican president said during her first state of the nation address, 11 months after taking office on Oct. 1, 2024.

The share of the population living in poverty fell from 41.9% in 2018 to 29.5% in 2024, which was the lowest level in four decades, Sheinbaum recalled, noting that the Gini coefficient went from 0.426 to 0.391.

“That places Mexico as the second country with the lowest inequality in the Americas, after Canada,” she pointed out

A Stellar Moment for Mexico

In her speech, Sheinbaum argued that recent progress has allowed Mexico to defy crisis expectations. “Even amid difficult circumstances, our economy shows strength, with estimated annual growth of 1.2% compared to the catastrophic forecasts released by international financial institutions,” she said.

In this context, Sheinbaum mentioned that Mexico is experiencing unprecedented international recognition and respect, pointing to agreements and bilateral meetings with the governments of Brazil, Canada, France and the European Union.

“Mexico is respected around the world. People know our nation is noble, generous and courageous. They know that we are living a stellar moment in our history,” she said.

Domestic Achievements

Sheinbaum also noted that foreign direct investment (FDI) reached a record US$36 billion in the first half of the year and reminded that annual inflation in July stood at 3.5%, the lowest since January 2021.

She highlighted exchange rate and price stability, stating that “our currency remains below 19 pesos per U.S. dollar,” while boasting that unemployment is at 2.7%, “one of the lowest levels in the world.”

The Mexican leader stressed that her administration is driving a comprehensive project: “The Fourth Transformation is not just an economic or political project, it is above all one of dignity.”

As of Aug. 31, federal government revenues totaled about US$298 billion, 8.5% higher in real terms than in 2024 and above what was projected in the Revenue Law.

“We increased the minimum wage in 2025 by 12%, which means a historic real-term increase of 135% since 2018,” Sheinbaum said, recalling the signing of the “Package Against Inflation and High Prices,” a voluntary agreement to prevent increases in gasoline and basic goods such as corn and tortillas, along with the launch of the “Mexico Plan” to boost domestic production.

“I take this opportunity to respectfully call on our country’s business community to join decisively in the Mexico Plan, with productive and innovative investment, and to advance with a banking system that provides better credit conditions,” she added.

Finally, the Mexican president said that public debt remained stable at 50% of GDP as of the end of August and insisted that public investment and spending are being carried out “with responsibility and honesty under the principle of republican austerity.”

teleSUR/ JF

Source: EFE

IN THIS ARTICLE