Mexico: Remittances increase in April
June 1, 2016
Remittances from Mexican workers abroad rose in April and recovered the ground lost in March, when transactions contracted. Remittances totaled USD 2.2 billion in April, which marked an 8.3% increase over the same month last year. The reading contrasted a 2.4% decrease registered in the previous month and beat the 6.6% rise the markets had expected. With April’s increase, the 12-month trailing sum of remittances totaled USD 25.5 billion, which represented a solid 6.3% increase compared to the same period last year. The increase followed the 5.7% expansion in the 12 months up to March.
Analysts agree that, with the currency-related swings behind, the April report on remittances showed that transactions remain on the path of healthy growth and that conditions remain in place for remittances to continue growing. They continue to be supported by a strong U.S. labor market, particularly in the construction sector. U.S payrolls in the construction sector—a proxy of hiring dynamics in the labor market with a high proportion of Mexican workers—continued to show healthy growth in April.
Author: Ricardo Aceves, Senior Economist