(Bloomberg) -- Mexico's minimum wage will be reviewed for a possible boost to strengthen the purchasing power of workers, President Andres Manuel Lopez Obrador said Sunday, the newspaper Reforma reported.
The increase will be gradual, he said while touring the state of Campeche, because the rate can't be changed by decree. Economic activity has to increase so businesses are able to provide jobs that pay fair wages, he said.
A national poll last week showed Lopez Obrador's approval fell to 61% from 66% as the economy teeters on the brink of a technical recession. Investors are uncertain about an economy now estimated by the central bank to grow 0.2% to 0.7% this year, down from 0.8% to 1.8% previously.
“I did some research on minimum wages in Guatemala, Honduras and El Salvador and was surprised to learn that they are twice what we have in Mexico,” Lopez Obrador said. “It turns out even China has a higher minimum wage than Mexico, so it's something we're going to look into.”
To contact the reporter on this story: Andrea Navarro in Mexico City at anavarro30@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Steve Geimann
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