Poverty in Mexico and SDG Progress
In 2015, United Nations member states adopted the Sustainable Development Goals (SDGs), a global effort to end poverty, protect the planet and promote peace and prosperity by 2030. Mexico, a country of about 128 million in North America, has seen progress in reducing poverty through federal policies, but key challenges remain. Poverty in Mexico has been on the decline in recent years. As of 2025, the number of Mexicans living below the $2.15 per day poverty threshold fell from 3.9 million, or 3%, in 2018 to 2.5 million, or 2%.
Despite this progress, structural and institutional inequality still threatens Mexico’s ability to meet the SDGs. This article will review Mexico’s evaluation based on the United Nations SDG objectives for the country.
Progress on Poverty
Poverty reduction has been significant nationwide. Over the past five years, the poverty headcount ratio at $2.15 per day has decreased from 5.06 in 2020 to 1.82 in 2025. In the same time frame, poverty rates after taxes and transfers have been reduced from 16.6% to 15%.
In the 2024 Voluntary National Review (VNR), Mexico emphasized the role of policy in these reductions. For example, from 2018 to 2024 minimum wage increased by 110% and the unemployment rate reduced to 2.6%. The main financiers for these poverty in Mexico reduction programs have been the federal government and foreign investors. Social spending increased by 38%, and by 2023, foreign direct investment increased by 27%.
Although inequality has been improving nationally, regional disparities persist. The 2024 VNR report states that between 2018 and 2022, the contrast between the richest and poorest decile earning ratios has declined from 22 times to 15 times.
Despite these improvements, inequality persists in rural regions of Mexico. As of 2025, 88% of the rural population lives below the $2.15 poverty threshold. This percentage has remained stagnant since 2018.
What’s Driving Change?
The Mexican government has been deliberate about addressing social injustices and structural inequality by means of redistribution programs. For example, from 2018 to 2022, 10 million additional Mexicans became food secure.
Households and NPISHs Final consumption expenditure per capita growth (annual %) increased from 0.5% in 2018 to 1.9% in 2024, with a volatile period in between, ranging from a minimum of -10.6% in 2020 and a maximum 7.7% in 2021.
In spite of efforts, issues in health care, social protection, gender inequality and structural informality persist. In the VNR report, the Mexican government claimed it had aimed to address some of these issues by focusing on SDGs which were interdependent on each other, such as how addressing SDG 1 (no poverty) invariably affects SGD 10 (reduced inequalities) as well.
Is Mexico on Track for 2030?
The United Nations uses the SDG index rank, SDG index score and spillover score to quantify a nation’s progress towards achieving its Sustainable Development Goals (SDGs) as well as to measure a nation’s ability to help other nations develop their own SDGs. Currently, Mexico ranks 72nd in the SDG index rank. Additionally, it has an index score of 70.80 and a spillover score of 90.23, ranking it at 85 out of the 167 UN member states that qualify for the index. These rankings demonstrate that, despite the progress on poverty in Mexico and inequality that has been made, there is room for improvement with regard to other SDGs.
In 2024, Mexico announced its policy initiative through the Plan Nacional de Desarrollo (PND). PND aims at stating the objectives and priorities of the government for the 2025 to 2030 period. PND contains four main areas of focus and three cross-cutting issues to direct public policy. Among the main areas of focus is “moral economy and work,” which states the priority of increasing minimum wages, expanding formal jobs and promoting social security. Among the cross-cutting issues, sometimes referred to as the transverse axis, the “substantive equality and women’s rights” objective aims at improving health policies and eliminating structural violence for women through reforms and the SEMUJERES agency.
The PND initiatives are part of the Movimiento Regeneracion Nacional (MORENA) attempt to consolidate the second stage of the transformation. The transformation is in reference to the general project of the party titled La Cuarta Transformacion, a political project which aims at transforming the political, economic and social structures of Mexico.
The Future of Mexico
The experience of Mexico shows that poverty reduction is possible, but sustaining it requires deeper structural reform. Issues related to health care, social protection, gender inequality, structural informality and regional inequality persist in the country. However, with the help of the PND strategic framework and policy initiatives, Mexico could be on track to achieve a majority of its SDGs by 2030.
– Arturo Gonzalez
Arturo is based in Miami, FL, USA and focuses on Business and Politics for The Borgen Project.
Photo: Flickr
