Mexico: Remittances maintain upward trend
December 1, 2011
In October, remittances from workers abroad totalled USD 1.9 billion, which undershot market expectations that had remittances at USD 2.0 billion. Although the reading marked a 10.4% increase over the same month last year, it was still less than half the extraordinary 21.2% increase observed in September. In line with the protracted recovery of the United States labour market, remittances are also showing signs of progress, albeit slow. The trend continues to point upwards, with remittances adding USD 22.5 billion in the last 12 months, which represents a 7.3% increase over the same period last year, and is above the 6.6% rise recorded in October. Higher remittances bodes well for private consumption, as they represent a significant source of income for many Mexican families, as well as the second most important source of foreign currency after oil exports.