Mexico Remittances

Mexico

Mexico: Recovery in U.S. labor market support Mexican remittances

February 3, 2015

In December, remittances from Mexican workers abroad totaled USD 2.19 billion. The reading came in above the USD 1.85 billion observed in the same month of the previous year and also overshot the USD 1.90 billion the markets had expected. The print marked a notable increase in year-on-year terms. Remittances shot up 18.8% annually in December (November: +2.5% year-on-year), marking the fastest increase since September 2011.

Remittances’ strong increase in December pushed full-year 2014 inflows to USD 23.6 billion, which was above the USD 21.9 billion registered in 2013. The reading represented a 7.8% expansion in 2014.

Mexico’s remittances benefited from 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 December 2014

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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