Mexico Remittances March 2018

Mexico

Mexico: Remittance inflows ease somewhat in March

May 2, 2018

Remittances totaled USD 2.6 billion in March, a 4.0% increase in year-on-year terms and below the 6.9% rise recorded in February. March’s figure was driven by a solid increase in the number of transfers to Mexico, which slowed somewhat from February’s 6.9% year-on-year expansion—a 13-month high—to 5.3%. Meanwhile, the average remitted amount ticked down from USD 316 a year ago to USD 312.

In line with March’s healthy figure, remittances registered an all-time high of USD 29.2 billion in the 12 months up to March, marginally above the USD 29.1 billion figure recorded in the twelve months up to February. March’s 12-month rolling figure was up 6.3% in year-on-year terms, easing from the 7.3% increase recorded in the 12 months up to February and the softest expansion in four months.

Remittance inflows are expected to continue trending upwards, supported by a very tight labor market in the United States. Although employment growth north of the Mexican border is expected to decelerate amid a nearly depleted pool of available skilled workers—thus weighing on growth in the number of transfers—higher salaries should boost the average remitted amount and broadly offset softer job growth.

Notwithstanding the possibility of tougher measures against Mexican immigrants in the U.S., FocusEconomics panelists expect remittances to trend upwards this year, reaching USD 29.8 billion by the end of 2018. For 2019, the panel sees remittances at USD 30.6 billion.


Author:, Economist

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Mexico Remittances March 2018 1

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


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