Mexico: Remittances recover at a steady pace
June 1, 2011
Remittances from workers abroad continue to recover, albeit at a moderate pace. In April, remittances totalled USD 1.87 billion, which represented a 4.7% increase over the same month last year. The print was virtually unchanged from the 4.8% increase recorded in March and was in line with market expectations. That said, remittances remain 29.0% below the USD 2.64 billion pre-crisis peak reached in October 2008. The remittances sent home by migrant workers in the United States represent a significant source of income for many Mexican families. As the U.S. labour market is expected to make a protracted recovery, remittances are likely to rise gradually, suggesting a slow but steady recovery in private consumption.