Mexico: Remittances increase for third consecutive month
April 1, 2014
In February, remittances from Mexican workers abroad totaled USD 1.68 billion. The print came in above the USD 1.58 billion registered in the same month last year but fell short of the USD 1.70 billion the market had expected. February's result represented a 5.7% expansion in annual terms (January: +8.8% year-on-year) and the third consecutive increase.
In the 12-months up to February, remittances totaled USD 21.8 billion, which constituted a 1.8% decrease over the same period last year (January: -3.0% yoy). At the current level, remittances are well below the USD 26.1 billion peak observed 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 22.4 billion in 2014. For 2015, the panel sees remittances rising to USD 23.0 billion.
Author: Ricardo Aceves, Senior Economist