Mexico: Remittances rise in May, 12-month sum of remittances is gradually approaching 2007 peak
July 1, 2015
Remittances totaled USD 2.2 billion in May. The reading came in slightly above the USD 2.1 billion registered in the same month last year, representing a 2.4% expansion (April: +1.5% year-on-year), but fell short of the USD 2.3 billion the markets had expected.
The 12-month sum of remittances up to May totaled USD 24.0 billion, which represented a 6.2% increase over the same period last year. The reading followed the 6.4% expansion observed in the 12 months up to April.
Remittances represent an important source of income for many Mexican families and with the recent weakening of the peso is supporting households’ purchasing power.
Mexico’s remittances are likely to continue growing this year, reaping the benefits of a gradual recovery in the U.S. economy, and particularly the U.S. labor market. Moreover, remittances are slowly approaching the peak that occurred in 2007, when remittances totaled USD 26.1 billion.
Author: Ricardo Aceves, Senior Economist