Economics: ENIGH 2024—higher labor income and government transfers; less targeting and effectiveness of social spending
The results of the 2024 National Survey of Household Income and Expenditures (ENIGH) show significant increases in current household income across all deciles, due to growth in labor income and government transfers. As we have noted in previous reports, both the increase in the minimum wage and the reform of the outsourcing law have resulted in a rise in average wages above economic growth, which is reflected in the most recent ENIGH data.
ENIGH figures on government transfers show that they have grown significantly since 2018. However, programs that had shown positive results, such as “Oportunidades”, which were based on conditioning and targeting the potential pool of recipients in order to adequately serve households with the greatest needs, have been discontinued. Instead, a priority has been given to programs that allocate resources to households at all income levels. This includes the senior citizens’ pension/stipend, which, although it generates public approval and support for the ruling party in elections, does not address the major backlogs and lack of access to basic services affecting a large share of the population.
In relation to the week’s indicators, it was reported that private consumption fell -0.9% YoY in May 2025, after posting a slight increase in April. This means that in the last six months there have been five declines, with an accumulated decrease of -0.9% YoY in the January–May average. With a behavior similar to that of consumption, gross fixed capital formation (GFCF) also contracted in May, but more sharply, at -6.7% YoY. And the Governing Board of the Banco de México (Banxico) decided to lower the Overnight Interbank Interest Rate by 25 basis points, bringing it to 7.75%.
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