Mexico Remittances October 2017

Mexico

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.

Notwithstanding the risk of tougher measures against Mexican immigrants in the U.S., analysts continue to expect remittances to increase further this year and to reach USD 29.9 billion by the end of 2018. For 2019, the panel sees remittances rising to USD 31.1 billion.


Author:, Economist

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Mexico Remittances October 2017

Note: Year-on-year variation of remittances from Mexican workers abroad and of U.S. non-farm payrolls.
Source: Mexico Central Bank (Banxico) and U.S. Bureau of Labor.


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