Sheinbaum: Investments will be reflected in GDP

Starting in July, the various initiatives promoted by the Mexican federal government will begin to have an impact on the economy, said President Claudia Sheinbaum.

Sheinbaum noted that, in the development of railway projects alone, US$43 billion will be allocated over the course of the six-year term. Together with investment in housing, this accounts for a large portion of the budget allocations for public works, the president noted during her press conference.

She emphasized the importance that public works will have in boosting the economy throughout her administration until 2030—a point that the Secretary of the Treasury is very clear about.

Elaborating on economic variables, Sheinbaum stressed that gross domestic product (GDP) growth is important, but it is not the only factor. She cited as an example that, as a result of the pandemic during Andres Manuel Lopez Obrador’s six-year term, GDP fell by more than eight percentage points.

However, by the end of that administration, 13.5 million people had been lifted out of poverty, and the minimum wage had increased substantially.

Finally, she noted that a country can experience 4% GDP growth, but “no one was lifted out of poverty, because all the wealth was concentrated in the hands of a few.”