Mexico: Remittances contract for 13th consecutive month
September 2, 2013
In July, remittances from Mexican workers abroad totaled USD 1.8 billion, which came slightly below the USD 1.9 billion recorded in the same month last year. The reading was in line with market expectations and represents a 1.2% contraction in annual terms. Nevertheless, it marks an improvement compared to the 7.2% decline recorded in June. This is 13th consecutive month of declining remittances.
In the 12 months up to July, remittances totaled USD 21.3 billion, which represents a 9.3% decline over the same period in the previous year (June: -9.3% year-on-year). At the current level, remittances are well below the USD 26.0 billion peak that was reached in 2007.
Although the U.S. labor market is showing sings of a gradual recovery, LatinFocus Consensus Forecast panelists expect remittances to remain below last year's levels, reaching USD 21.6 billion in 2013. For next year, the panel sees remittances rising to USD 22.4 billion.
Author: Ricardo Aceves, Senior Economist