Mexico: Remittances continue to improve in March
May 4, 2015
Remittances from Mexican workers abroad totaled USD 2.3 billion in March. The reading came in above the USD 2.1 billion observed in the same month last year, marking a 7.6% expansion (February: +7.2% year-on-year). In addition, March’s result slightly overshot the USD 2.2 billion the markets has expected and the figure was the highest since May 2012.
In the first quarter, remittances totaled USD 5.7 billion. Of that amount, USD 5.6 billion came from the U.S., according to a new breakdown that Mexico’s Central Bank began to publish this year. Canada sent USD 21.7 million, while USD 17.3 million were received from Guatemala. This information provides a clearer picture that most of the cash sent from Mexicans abroad comes from the north of the border.
In the 12 months up to March, the accumulated remittances totals USD 23.9 billion, which represented a 6.5% expansion compared to the same period last year. The reading marked only a moderation over the 7.2% rise registered in the 12 months up to February.
Mexico’s remittances are likely to continue growing this year, reaping the benefits of a gradual recovery in the U.S. economy, and particularly the U.S. labor market. Moreover, remittances are slowly approaching the peak that occurred in 2007, when remittances totaled USD 26.1 billion.
Author: Ricardo Aceves, Senior Economist