Mexico: Remittances remain subdued in October
December 3, 2012
In October, remittances from workers abroad, mostly in the United States, totalled USD 1.7 billion. The reading was in line with market expectations but came in below the USD 1.9 billion recorded in the same month last year. The figure represents a 7.1% annual contraction, which, nonetheless, marks an improvement over the 20.2% decline witnessed in September.
The recovery in remittances has stalled as, in the 12 months up to October, remittances fell to a total of USD 22.6 billion, which is the same level seen in the corresponding period the previous year. The faltering recovery in remittances is likely to be a drag on private consumption going forward, as remittances represent a significant source of income for many Mexican families. Moreover, remittances represent the second most important source of foreign currency after oil exports.