13 Million Mexicans Went from High and Middle to Low IncomeBy MBN Staff | Thu, 04/01/2021 - 05:00
The economic crisis caused by the pandemic led more than 13 million people with a medium or high income to fall into the lower-income population in Mexico during 2020, revealed a study by the Centro de Estudios Espinosa Yglesias (CEEY). Of those in the highest income group, 56 percent remained in the group during 2019 but in 2020 this number dropped to 55.1 percent, the report stated.
“Over 13 million people with middle to high incomes fell into the ranks of the lowest labor income, which now represents 40 percent of the population. This means that poverty has been fuelled by the middle class, but also by those with a high income,” said Rodolfo de la Torre, member of CEEY. Falling average incomes and rising inequality implies a considerable decline in living standards for a significant part of the population, de la Torre added. According to the study, around 23.7 percent of the Economically Active Population (EAP) stopped seeking employment and paid work, while those still employed saw their income contract.
This week, a new study by UNAM's University Programme for Development Studies (PUED) revealed that the effects of the pandemic on the economy and the rise in food prices caused an increase in poverty by income that hit hardest those who were already poor. The study notes that extreme poverty and poverty by income rose over the past year. Between 1Q20 and 4Q20, the population in this group is estimated to have risen from 49 to 56 percent.
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