Mexico: Remittances remain resilient in April
June 1, 2017
Remittances totaled USD 2.3 billion in April, a 6.2% expansion from the same month last year and the best April reading on record. The result followed a 15.1% leap in March and was in line with market expectations. On the back of improved dynamics in the U.S. labor market, the 12-month trailing sum of remittances totaled USD 27.5 billion, an 8.3% increase compared to the same period last year and the highest figure to date. The increase followed the 8.5% expansion in the 12 months up to March.
Remittance inflows continued to be fueled by a strong U.S. jobs market. Encouragingly, April’s headline figure was spearheaded by growth in the average remitted amount, which expanded 4.4% in annual terms, while the volume of transactions only grew 1.8%. In recent years, remittance growth has been led largely by increases in transactions, given that meagre wage growth in the U.S. has weighed on the average remitted amount. Hence, April’s details spell good news for Mexican workers in the U.S. as it suggests that wage growth could finally be picking up pace.
Author: David Ampudia, Economist