Mexico Remittances

Mexico

Mexico: Mexican remittances contract in January

March 2, 2015

In January, remittances from Mexican workers abroad totaled USD 1.63 billion. January’s result came in a notch below the USD 1.64 billion observed in the same month last year, representing a 0.7% year-on-year contraction (December: +20.8% year-on-year). The reading, which fell short of the USD 1.75 billion the markets had expected, marked the first negative annual change since July 2013.

In the 12 month’s up to January, remittances totaled USD 23.6 billion, which represented a 7.2% increase over the same period last year. The reading followed the 8.0% expansion registered in the 12-month period up to December.

Mexico’s remittances continued to benefit from a gradual recovery in the U.S. economy, and particularly the U.S. labor market. Remittances are likely to continue growing this year, as the U.S. labor market continues to recover. However, remittances are still short of the peak that occurred in 2007, when remittances totaled USD 26.1 billion.

LatinFocus Consensus Forecast panelists continue to take these developments into account and expect remittances to reach USD 24.5 billion in 2015. For 2016, the panel sees remittances rising to USD 25.9 billion.


Author:, Senior Economist

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Mexico Remittances Chart


Mexico Remittances January 2015

Note: Year-on-year variation of remittances from Mexican workers abroad and U.S. non-farm payrolls.
Source: Mexico Central Bank (Banxico) and U.S. Bureau of Labor.


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