Mexico: Remittance inflows lose steam in July

Remittances totaled USD 2.9 billion in July (June: USD 3.1 billion), a 10.3% increase from the same month last year. The result was below June’s 23.1% rise and marked the slowest growth since March. However, the average amount remitted rose from USD 311 a year prior to USD 323 in July.

Inflows have accelerated in line with non-farm U.S. employment gains in recent months and should see further support in the months ahead from the tight U.S. job market. Remittances registered an all-time high of USD 32.2 billion in the 12 months up to July, up from the USD 32.0 billion sum recorded in the twelve months up to June. July’s 12-month rolling figure increased 12.2% annually (June: +12.6% yoy).

Mexico Remittances Forecast

FocusEconomics panelists expect remittances to remain upbeat this year, reaching USD 29.8 billion by the end of 2018. For 2019, the panel sees remittances at USD 30.7 billion at the end of the year.