Mexico: Remittances expand at fastest pace in over two years
May 2, 2014
In March, remittances from Mexican workers abroad totaled USD 2.06 billion. The print came in above both the USD 1.77 billion registered in the same month last year and the USD 1.90 billion the market had expected. March's reading constituted a 16.0% expansion (February: +5.8% year-on-year), which marked the fastest pace of expansion since September 2011.
In the 12-months up to March, remittances totaled USD 22.1 billion, which marked a 1.0% increase over the same period last year (February: -1.8% yoy) and represented the first positive reading since October 2012. The result points to a steady recovery in transactions, which, nonetheless, are still well below the USD 26.1 billion peak registered in 2007.
Given the fact that the U.S. labor market is showing signs of a gradual recovery, LatinFocus Consensus Forecast panelists expect remittances to reach USD 22.4 billion in 2014. For 2015, the panel sees remittances rising to USD 23.0 billion.
Author: Ricardo Aceves, Senior Economist