The World Bank and Mexico work together to foster inclusive and sustainable economic growth

WASHINGTON – Given Mexico’s adequate macroeconomic situation, as well as the government’s priority actions, the World Bank will support, technically and financially, the implementation of public policy actions that promote inclusive and sustainable economic growth in the country.

This support will be implemented through a US$700 million operation, approved today, which is linked to the development of public policies that seek to simplify the business environment for micro, small and medium-sized companies, promote financial inclusion, and strengthen sustainable economic management. These actions will help vulnerable groups to benefit from economic growth, in addition to strengthening the institutions that promote sustainable development.

In this regard, Mark R. Thomas, World Bank director for Mexico, Colombia, and Venezuela, said that “Mexico is making important efforts to move towards a more inclusive and sustainable economic growth. This includes the development of public policies that benefit the poorest rural areas and help close regional income gaps.”

Specifically, the policy actions identified by the World Bank in this operation include boosting the new simplified tax regime and the development of financial mechanisms to guarantee financial support in the event of natural disasters. Additionally, it will support the strengthening of the forestry law to better regulate the change of forest use and to reinforce public consultations with the populations affected by the latter in indigenous territories.

Likewise, it seeks to promote financial inclusion with a focus on Mexican migrants in the United States, reinforcing and expanding the coverage of financial services, so that remittances are sent within the national territory in a simple, safe, and economical manner. Furthermore, the identified policy actions will contribute to improving the regulation of the digital payment systems market, with the aim of further promoting financial inclusion, specifically for women.

The operation will also contribute to meeting the challenges of climate change adaptation and mitigation by supporting global objectives in line with Mexico’s Nationally Determined Contribution (NDC), focusing on the management and conservation of forest land. The foregoing is relevant since Mexico is a country vulnerable to natural disasters, mainly earthquakes, and is highly exposed to the impacts of climate change, especially extreme hydrometeorological events that disproportionately affect the southern states.