Mexico: Remittances contract for 11 straight months
July 1, 2013
In May, remittances from Mexican workers abroad totalled USD 2.0 billion, which was below the USD 2.3 billion witnessed in the same month last year. The print, which undershot market expectations, represents a 13.2% contraction in annual terms, which is a deterioration over the 6.4% drop observed in April. Moreover, the reading marks the 11th consecutive month of negative annual growth in remittances.
In the 12 months up to May, remittances recorded USD 21.4 billion, which constitutes an 8.4% decline over the same period the previous year (April: -6.4% year-on-year). At their current level, remittances are well below the peak of USD 26.0 billion reached in the full year 2007.
LatinFocus Consensus Forecast panellist see remittances picking up somewhat in the second half of the year to a total of USD 22.4 billion in 2013, which would be unchanged over the amount recorded in 2012. For next year, the panel sees remittances rising to USD 24.3 billion.
Author: Ricardo Aceves, Senior Economist