We are the team of México, ¿cómo vamos?
We are a growing collective of social scientists, mainly Economists, who formed a nonprofit organization in 2014.
Our ultimate goal is to boost a sustained economic growth in order to generate more and better jobs. We want a country that can do more development and well-being to all people. We want to help diminish wage gaps. We want a sustainable economy that is also attractive for investment.
To achieve that, we will evaluate the behavior of economic variables (and soon of public finance as well) at a national and local level, and translate their causes and consequences into clear messages for all
citizens, reporters, governments, and other economic agents and decision-makers.
We serve as a bridge between academic research and public debate.
We seek to contribute to public agenda. For that, we develop and share investigations, analyses and press releases about events and public policies affecting social and economic development in the country.
We trust that what matters is to keep going forward; to know how we’re doing and what can be improved, not just where we are.
SOFÍA RAMIREZ
Managing Director
ADRIANA GARCÍA
Economic Analysis Coordinator
REGINA MEDINA
Data Coordinator
DANIELA HERNÁNDEZ
Media and Inter-Institutional Relations Manager
ANA GONZÁLEZ
Advocacy and Institutional Development Coordinator
BRENDA FLORES
Analyst
SANDRA MARTÍNEZ
Analyst
AXEL GONZÁLEZ
Analyst
JUVENAL CAMPOS
Analyst
KAREN TORRES
Legal Advisor
ALAN HERNÁNDEZ
Fullstack
MISION & VISION
MISION
Offer essential economic information to understand where we are and where we are going, as well as explain economic phenomena in a didactic way to reach a greater number of people, and based on this, make proposals to influence and trigger sustainable and sustained economic growth in Mexico.
VISION
To be a national and state benchmark on sustainable and balanced economic growth, as well as development and social progress.
PURPOSE
Curate, interpret and create economic information to bring it closer to people, companies, organizations, and governments to support day-to-day decision-making, accurately and with less risk.
MEXICO’S SOCIAL PROGRESS INDEX
2015 – 2021
This is the fourth installment of the Social Progress Index (IPS) at the state level that “Mexico, how are we doing?” and the second, which is calculated as a series with data from 2015, the year for which most of the 56 variables used for the Index are available. In this way, the IPS is not only a photograph of the last year, but a film that over the course of seven years tells stories of progress and social stagnation in the states.
This is the second time that revised figures have been published in all variables, which is relevant in the context of the post-pandemic and the slow and uneven recovery of the economy, the labor market and the restitution of the most basic public services. such as education and health.
During the pandemic, Mexico faced very high mortality rates derived from a saturated health system, with no room for increasing medical care to more people during the worst moments of the health crisis, but also due to the lack of stewardship in the management of health services. health.
However, it was in 2018, two years before the pandemic, that Mexico achieved the highest score in social progress. That same year the last peak of economic activity and investment growth in the country was achieved, so it is very evident that without sustained growth there is no possible social progress.
That is why having revised calculations for 2020 and 2021 offers certainty and allows calculating the cost in social progress that recent years have represented for the population in Mexico.
MEXICO, HOW WE ARE GOING
IN RETIREMENT SAVINGS?
The document presents a Diagnosis of Retirement Savings in Mexico and estimates the potential market of people who can save for retirement in Mexico. An analysis is made of the Mexican savings ecosystem with purpose of solving questions such as who saves in Mexico? who can save in Mexico? and who could save more in Mexico?
The reforms to the Mandatory Savings System have improved the retirement prospects of formal workers if, in addition, we incorporate public policy recommendations, access to workers’ pensions could be improved and replacement rates increased to desired levels (between 70 and 85% Vanguard, 2019)
All proposed government actions are useful. However, one of the main recommendations is voluntary retirement savings plans with automatic enrollment and termination. These types of plans have proven to be successful in other jurisdictions, as they enhance voluntary savings by eliminating friction in the accumulation of retirement savings.
PUBLICATIONS
Andrés Manuel López Obrador’s presidency began with a commitment to a government change that would curb corruption in the public sphere and, above all, prioritize the Mexican people in social development policies. These changes would be accompanied by a revival of the national oil industry, with the state playing a predominant role in the energy sector, aiming to achieve energy sovereignty.
While the shift in economic policy started with the cancellation of Mexico City’s new airport in Texcoco, Mexico in December 2018, the new administration had only 2019 to implement its economic agenda before the COVID-19 pandemic struck.
The labor market is a fundamental pillar in people’s lives. It enables individuals to acquire income necessary for meeting basic needs, accessing essential services such as education and healthcare, and enhancing the overall quality of life for workers and their families. Consequently, Mexico’s Secretariat of Labor and Social Security (Secretaría del Trabajo y Previsión Social or STPS) assumes a critical role in the country’s development and the well-being of Mexicans.
Recently, Marath Baruch Bolaños López was appointed as the new head of the STPS, replacing Luisa María Alcalde, who now serves as Secretary of the Interior. Given these changes and the significance of the department, the Economic Observatory México, ¿cómo vamos? presents a minimum agenda outlining the key pending issues in labor matters in Mexico. This agenda focuses on recognising two major labor market challenges: high levels of informality and low female labor force participation.
For the fourth consecutive year, the Economic Observatory, México, ¿cómo vamos? presents the Social Progress Index (IPS) for the 32 federal entities in Mexico, this time with revised figures from 2015 to 2021. This Index reviews the progress in the well-being and living standards of people in each of the states, which is why the IPS is not a snapshot of the last year, but a movie that tells stories of social progress and stagnation over seven years, comparing not only progress between states but also making a contrast exercise within the federal entity over time
Women work longer hours in unpaid activities
- Women spend 43 hours per week working on housework and care tasks, while men only 18 hours.
- If we divide the 43 hours by 5 days, we obtain that during the week women dedicate 8.6 hours a day to housework and care. More than a full working day!
- The total value of unpaid work in households as a percentage of GDP is 26.3%, of which women contribute 19.1% of GDP, and men only 7.2%.
In June 2023, annual general inflation in Mexico reached 5.06%, the lowest since March 2021, while core inflation decreased to 6.89%. Although food prices remain high, they exhibited a slowdown with an annual variation of 7.34%.
Investment grew by 3.0% during the fourth quarter of 2022, but as a percentage of GDP, it decreased from 21.4% to 21.1% compared to the third quarter of the year. Gross fixed capital formation (investment) was at a similar level to pre-pandemic, but it is lagging behind by 8.3% compared to its highest level observed in 3Q2015.
During the first quarter of 2023, 423,384 jobs were added to the IMSS registry, a figure consistent with the goal of creating the equivalent of 100,000 jobs per month. The Economic Traffic Light for formal job creation is in green.
In 3Q22, Mexico’s GDP increased 0.9% q/q, 4.3% y/y. Out of the six most important sectors of the economy, only construction is still lagging.
GFI in Mexico increased 0.1% in 3Q22, passing from 20.8% in previous quarter to 21.4% of GDP. Nevertheless, gross fixed investment is still lagging: 1.7% vs. pre-pandemic levels and 11.2% from the maximum level observed back in 3Q15.
In 3Q22, labor force participation was at 59.9%, similar to the one observed in previous quarter and representing an increase of 0.5%-pts over the past 12 months.
INMIGRATION IN MEXICO
The third installment of #MásAperturaMenosBarreras offers a series of concrete proposals in each of the subgroups of immigrants identified to adjust, create and/or update public migration policies.
- In terms of labor policy, it is suggested to update the Federal Labor Law (particularly article 7), create a visa for entrepreneurs, and expedite and increase the issuance of work permits.
- Some changes in economic policy include the generation of signs of Mexico as a country open to immigration and innovation; create a talent attraction strategy in the different states; and provide greater connectivity to the country.
- With regard to social policy, access to the country for refugee applicants should be facilitated; create a new narrative around immigration; make the issuance of documents efficient; and increase financing, training and tools for Mexican authorities and institutions.
- Finally, we must generate the necessary budgetary changes to provide tools to the institutions responsible for the issuance, regularization, attention, protection and registration of migratory flows in the country.
INFOBITES
