Mexico: Remittances remain strong in June
August 2, 2017
Remittances totaled USD 2.4 billion in June, a 4.5% expansion from the same month last year. The result followed a 4.3% increase in May. On the back of a robust U.S. labor market and the weakness of the peso earlier this year, the 12-month trailing sum of remittances totaled USD 27.8 billion, a 7.3% increase compared to the same period last year. The increase followed a 7.6% expansion in the 12 months up to May.
Remittance inflows, a key source of income in Mexico, have been one of the country’s brightest spots so far this year. In June, there was a new shift towards fewer total transactions compared to May although the average remitted amount was greater. In recent years, remittance inflows had been driven solely by increases in the number of transactions. June’s increase in the average remitted amount is the fifth consecutive month it did so and signals rising compensation for Mexican workers in the U.S.