Mexico: poverty headcount ratio at 3.20 U.S. dollars a day 1984-2022

In 2022, approximately 4.7 percent of the Mexican population were living on less than 3.20 U.S. dollars per day, a considerable decrease in comparison to the previous year. Furthermore, unemployment rate in this Latin American country during this period was at 3.2 percent.

Poverty is considerably higher in the South

In 2022, the three states with the highest poverty rate in the Aztec country were Chiapas, Guerrero, and Oaxaca, all in the southern region. In contrast, the top eight federal entities with the lowest were all in the North. The clear division is further accentuated by the Northern Border Free Zone, which encompasses 43 municipalities in the Mexico-U.S. border with higher minimum wages and lower taxes. Poverty in states such as Chiapas reaches over 67 percent, which means two out of three residents are under the poverty line and almost one out of three under extreme poverty conditions.  

A country troubled by inequality

Poverty and inequality are no news in Mexico. In the most recent data, around 80 percent of the total wealth of the country was concentrated in the top 10 percent of the population. Moreover, the bottom 50 percent had a negative share, meaning that half of the Mexican population had more debts than assets. But inequality does not only encompass wealth distribution, but Mexico also has a problem regarding gender inequality. The government has failed to achieve many of its goals to reduce the gap between genders.