Mexico: Remittances continue to recover
May 1, 2011
Amid the gradual recovery in the United States, remittances from workers abroad continue to crawl towards pre-crisis levels. In March, remittances totalled USD 2.05 billion, which was 4.8% above the level observed in the same month last year. The reading represented a slight moderation compared to the 6.0% increase tallied last month, but was in line with market analysts' expectations. That said, remittances remain 22.3% below the USD 2.64 billion pre-crisis peak reached in October 2008. Remittances, mostly from migrant workers in the United States, are an important source of income for many Mexican families. As conditions in the U.S. labour market improve, especially in the construction sector, remittances are likely to continue recovering, pointing to a more meaningful recovery in private consumption.