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Social Spending in Mexico: Needs, Priorities and Reforms

Author

Listed:
  • Mrs. Swarnali A Hannan
  • Juan Pablo Cuesta Aguirre
  • David Bartolini

Abstract

Poverty in Mexico was high before the COVID-19 pandemic and has been exacerbated by the pandemic, with significant variation across states. Education losses from the pandemic are likely to be large and worsen pre-existing disparities; unless mitigated soon, they could contribute to heightened scarring over the medium term. Using state-level and cross-country comparisons, this paper reviews key social programs as well as priorities in education and health. It finds that higher spending and improved design of social programs (e.g., better targeting) would reduce socioeconomic gaps, mitigate scarring risks, and foster inclusive growth.

Suggested Citation

  • Mrs. Swarnali A Hannan & Juan Pablo Cuesta Aguirre & David Bartolini, 2021. "Social Spending in Mexico: Needs, Priorities and Reforms," IMF Working Papers 2021/244, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/244
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