Average Mexican Household Income Up 11% from 2020–2022

 Average Mexican Household Income Up 11% from 2020–2022

BY MND STAFF

Many Mexicans have recovered economic ground lost during the pandemic. 

The average Mexican household earned 63,695 pesos (US $3,800) each quarter in 2022, an 11% increase from 2020 that resulted in Mexicans recovering economic ground lost during the pandemic. In addition, the gap between the richest and poorest of Mexico decreased. 

However, when reaching further back before the pandemic start in March 2020, average household income rose 4.6% compared to 2018 and 0.2% from 2016 in real terms, according to the 2022 National Household Income and Expenditure Survey, prepared every two years by the National Institute of Statistics and Geography (INEGI)

When comparing 2018 and 2022, household incomes have seen an on average 4.6% increase and more evening out of wage inequality, although the ratio between the top tenth and bottom tenth of earnings is still 15:1.

The recovery from 2021–2022’s losses was largely accounted for by income increases among the poor that resulted in more even national income distribution than in previous years. The richest tenth of households earned 15 times more than the poorest tenth, compared to an 18:1 ratio in 2018 and a 21:1 ratio in 2016.

Large racial and gender inequalities remain. People who identify as Indigenous earned 24.5% less than the national average in 2022, while speakers of Indigenous languages earned 43.9% less. Women earned 35% less than men.

Paid labor accounted for 65.7% of Mexican household income in 2022, while transfers — such as remittances, government programs and pensions — accounted for 17.2%. Remittances increased 39.2% from 2020 while welfare payments increased 33.6%.

The average quarterly expenditure per household was 39,965 pesos (US $2,385) — 17.2% more than in 2020 but only 2.1% more than in 2018. Of this, 37.7% went to food, beverages and tobacco, 19.3% went to transport and communications, and 9.8% went to education and leisure.

Originally published in Mexico News Daily, https://mexiconewsdaily.com/. Reprinted with permission.