Mexico: Growth in remittances moderates in April
June 1, 2015
Remittances totaled USD 2.0 billion in April. The reading came in slightly above the USD 1.9 billion observed in the same month last year, registering a 1.8% expansion (March: +7.4% year-on-year), but came in slightly below the USD 2.1 billion the markets had expected.
In the 12 months up to April, the accumulated remittances totals USD 23.9 billion, which represented a 6.4% expansion compared to the same period last year. The reading followed a similar 6.4% rise registered in the 12 months up to March.
Mexico’s remittances are likely to continue growing this year, reaping the benefits of a gradual recovery in the U.S. economy, and particularly the U.S. labor market. Moreover, remittances are slowly approaching the peak that occurred in 2007, when remittances totaled USD 26.1 billion.
Author: Ricardo Aceves, Senior Economist