Mexico: Remittances expand for the first time following a 13-month slump
October 1, 2013
In August, remittances from Mexican workers abroad recorded USD 1.91 billion, which came slightly above the USD 1.88 billion observed in the same month last year. The reading was in line with market expectations and represents a 1.1% expansion in annual terms, which is the first positive reading in the last 13 months.
In the 12 months up to August, remittances totaled USD 21.3 billion, which represents a 8.2% decline over the same period in the previous year (July: -9.3% year-on-year). At the current level, remittances are well below the USD 26.0 billion peak that was reached in 2007.
Given the fact that the U.S. labor market is showing sings of a gradual recovery, LatinFocus Consensus Forecast panelists expect remittances to reach USD 21.6 billion in 2013. For next year, the panel sees remittances rising to USD 22.4 billion.
Author: Ricardo Aceves, Senior Economist