Mexico: Remittances grow at fastest pace this year in August
October 1, 2015
In August, Mexico’s growth in remittances maintained the strong footing observed in July. Transactions registered USD 2.3 billion in August, which represented a whopping 13.1% expansion over the USD 2.0 billion registered in the same month last year. The reading represented the fastest expansion so far this year and followed the notably-strong 11.8% expansion registered in July.
Due to the strong expansion, the rolling sum of remittances totaled USD 25.6 billion in the 12 months up to August, which represented a 7.2% rise over the same period of the previous year. The print followed a 6.3% increase in the 12 months up to July. August increase was the fastest in three years.
Remittances continued to be supported by the gradual improvement in the U.S. labor market, in particular in the construction sector. As there is more evidence that the U.S. labor market is gradually improving, remittances are slowly approaching pre-crisis levels and the peak that occurred in 2007, when they totaled USD 26.1 billion.
Author: Ricardo Aceves, Senior Economist