Mexico: Remittances continue to rise despite slow U.S. recovery
November 1, 2011
Despite the protracted recovery of the labour market in the United States, remittances from migrant workers abroad continue to rise. In September, remittances totalled USD 2.08 billion, which beat market expectations that had them falling to USD 1.90 billion. Moreover, the reading represents an extraordinary 21.2% expansion over the same month last year and, although boosted by a favourable base effect, still marks the fastest pace since October 2006. With the current reading, remittances have been increasing uninterruptedly in annual terms for a full year. The strong print bodes well for private consumption, as remittances represent a significant source of income for many Mexican families as well as the second most important source of foreign currency after oil exports.