The Mexican economy still has room for growth, according to Eduardo Osuna, vice president and general director of BBVA Mexico. He stated that the minimum wage in Mexico is one of the lowest in Latin America and the OECD, and is about 30 percent below its peak in the 1970s.
Despite this, recent increases in the minimum wage have improved the purchasing power of families and had no impact on inflation levels, Osuna said. However, he also highlighted that there is an opportunity to further increase the minimum wage for workers with formal incomes in order to improve their purchasing capacity.
In fact, BBVA Mexico reported profits of 25,499 million pesos in the first three months of the year, a decrease of 0.9 percent compared to the same period last year. The decrease was attributed to increased reserves aimed at reducing credit risks, especially related to loans for families. Despite this decline in profits, BBVA Mexico remains a significant contributor to Spanish consortium profits globally, accounting for 56.5 percent of total profits.
Osuna expressed optimism that future increases in wages would positively impact economic activity by boosting family income and potentially leading to a return to positive profit generation numbers.
