Over the past three decades, Mexico has underperformed in terms of growth, inclusion, and poverty reduction compared to similar countries. Between 1980 and 2022, the economy grew by just over 2% annually on average, limiting progress in closing the gap with high-income economies.
Yet, the official multidimensional poverty rate in Mexico, which assesses income poverty alongside six indicators of social deprivation, fell from 43.2 percent in 2016 to 36.3 percent in 2022, lifting 5.4 million people out of poverty, driven mainly by labor market outcomes, including increases in the minimum wage.
Mexico’s economic growth is projected to be 0.5% in 2025, with a gradual recovery reaching 1.9 percent by 2027—still below the average growth rate of the past three years. This is mainly due to anticipated uncertainty surrounding potential shifts in trade policy, the upcoming revision of the USMCA, and the expected slowdown of the U.S. economy.
With a gradual improvement in growth expected toward 2027, a reduction in the poverty rate is projected. The key for Mexico to unlock its full economic potential lies in strengthening the engines of growth. This will require boosting infrastructure investment through greater mobilization of private capital, strengthening the business environment, and expanding firms’ access to financing —especially for small and medium-sized enterprises. Enhancing security, providing greater regulatory certainty, improving the quality of public services, and promoting competition represent key opportunities to consolidate growth. Likewise, advancing measures that strengthen revenues will help maintain sustainable public debt and reinforce the country’s economic stability.
This is mainly due to anticipated uncertainty surrounding potential shifts in trade policy, the upcoming revision of the USMCA, and the expected slowdown of the U.S. economy.
The World Bank is supporting the improvement of Cameroon’s competitiveness in energy, transport, and telecommunications. Furthermore, it is seeking to support service delivery for human development through a social safety net system and local development, with a focus on providing greater access to basic public services through infrastructure upgrades and capacity building in Cameroon’s most disadvantaged regions.
On climate change, Cameroon has committed through its Nationally Determined Contributions (NDC, 2021) to reduce its greenhouse gas (GHG) emissions by 35% (up from 32% as presented in 2015 at COP 21). Since COP21 in 2016, the WBG has integrated actions aimed at net reduction of GHG emissions and adaptation in its operations. The portfolio includes projects with climate co-benefits (CCB) of 47%. The latest Country Climate and Development Report (CCDR) for Cameroon launched in November 2022, highlights the challenges of climate change facing Cameroon’s development and outlines development priorities.
Last Updated: Mar 26, 2025