Mexico: Remittances surge in October
December 1, 2017
Remittances totaled USD 2.6 billion in October, a 19.0% surge from the same month last year and a stark contrast to the 1.0% year-on-year decrease recorded in September. The 12-month trailing sum of remittances reached a record-high total of USD 28.6 billion in October. This represented an 8.5% increase compared to the same period last year, above the 7.5% expansion in the 12 months up to September.
The October upsurge likely reflected higher remittance inflows across the border following the earthquakes that struck Mexico in early and mid-September. The ongoing improvement in the U.S. labor market also seemed to continue to support the upward trend in remittances, which is expected to buttress private spending in light of multi-year high inflation and decelerating credit growth. Workers’ opportunistic behavior may have also been at play here following a severe weakening of the peso in October.
Author: David Ampudia, Economist