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.
Author: Ricardo Aceves, Senior Economist