Mexico: Remittances drop to lowest level in two years
March 2, 2013
Reflecting the slow recovery in the United States, especially in the construction sector, remittances from Mexican workers abroad dropped to USD 1.5 billion in January, which was in line with market expectations but marks the lowest level in two years. On an annual basis, remittances declined 2.3% over the same month last year, which was nonetheless an improvement over the 4.4% annual contraction tallied in December. With January's drop, remittances have contracted for seven consecutive months.
In the 12 months up to January, remittances totalled USD 22.4 billion -which represents a 2.2% contraction over the same period last year (December 2012: -1.6% year-on-year) - and remain well below the peak of USD 26.0 billion reached in December 2007.
LatinFocus Consensus Forecast panellist project remittances to total USD 22.7 billion this year. For next year, the panel projects remittances to rise to USD 23.9 billion.