Mexico: Remittances increase at slower pace
September 1, 2011
In July, remittances from workers aboard totalled USD 1.90 billion, which fell slightly short of market expectations that had remittances adding USD 1.95 billion. The reading represents a 1.4% expansion over the level observed in same month last year but was well below the 6.9% increase tallied in June. Most remittances come from migrant workers in the United States, especially those in the construction sector. Consequently, subdued growth prospects for the U.S. are likely to become a drag in the recovery of remittances, which represent the second most important source of foreign revenue and a significant source of income for many Mexican families.
Author: Ricardo Aceves, Senior Economist