Mexico: Mexico's remittances gain strong momentum in July
September 1, 2015
Remittances registered USD 2.2 billion in July, which represented a whopping 11.7% expansion over the USD 1.9 billion recorded in the same month last year. The increase came in well above the 5.5% increase reported in June and the 6.8% expansion the markets had expected.
As a result of the monthly increase, the accumulated remittances in the 12 months up to July totaled USD 24.3 billion, which represented a 6.2% expansion over the same period of the previous year. The reading followed the 5.7% increase registered in the 12 months up to June.
Remittances transactions continued to be supported by the gradual improvement in the U.S. labor market, in particular in the construction sector. As there is more and more evidence that the U.S. labor market is improving, remittances are gradually approaching the peak that occurred in 2007, when they totaled USD 26.1 billion.
Author: Ricardo Aceves, Senior Economist