Mexico: Remittance inflows grow briskly in February
Remittances totaled USD 2.2 billion in February, a 6.9% increase in year-on-year terms and below the 7.5% rise recorded in January. The figure was entirely driven by an increase in the number of transfers to Mexico, which at 6.9% was the strongest year-on-year expansion since January 2017 and nearly double the 3.5% rise recorded in January. Conversely, the average remitted amount was unchanged over a year ago in February, at USD 302.
In line with February’s resilient figure, remittances registered an all-time high figure of USD 29.1 billion in the 12 months up to February, a tad above the USD 28.9 billion figure recorded in the twelve months up to January. February’s 12-month rolling figure was up 7.3% in year-on-year terms, above the 6.6% increase recorded in the 12 months up to January and the fastest expansion in four months.
Remittance inflows remain very supportive of growth, with solid employment growth north of the Mexican border buttressing cash transfers home. A very tight labor market should see growth in the average remitted amount gather speed as a result of higher salaries, which ought to support domestic private spending in the quarters to come.