Mexico: Remittances drop in September
November 2, 2017
Remittances totaled USD 2.3 billion in September, a 1.0% drop from the same month last year, contrasting the 9.3% year-on-year increase recorded in August. The 12-month trailing sum of remittances reached a total of USD 28.2 in September. This represented a 7.5% increase compared to the same period last year, which was below the9.0% expansion in the 12 months up to August. September’s decline was likely due to the natural disasters that hit Mexico and the United States in September.
Remittance inflows have underpinned household consumption so far this year, contrasting the effects of rising inflationary pressures and weakening credit growth. The good shape of the labor market in the United States has pushed wages up, which has translated into stronger remittance flows despite fears of a crackdown on immigration in the Northern neighbor.
Author: David Ampudia, Economist