Mexico: Remittances gain strength in September
November 1, 2013
In September, remittances from Mexican workers abroad totaled USD 1.79 billion, which came in above the USD 1.66 billion observed in the same month last year. The reading slightly overshot market expectations (USD 1.75 billion) and represents a substantial 8.1% expansion in annual terms, which is the second positive reading in the last 15 months and the fastest pace of expansion since February 2012.
In the 12 months up to September, remittances totaled USD 21.4 billion, which represents a 5.9% decline over the same period of the previous year (August: -8.2% year-on-year). Remittances remain well below the USD 26.0 billion peak that was reached in 2007.
Given the fact that the U.S. labor market is showing sings of a gradual recovery, LatinFocus Consensus Forecast panelists expect remittances to reach USD 21.6 billion in 2013. For next year, the panel sees remittances rising to USD 22.4 billion.
Author: Ricardo Aceves, Senior Economist