Mexico: Remittances moderate in May
July 1, 2011
Remittances from workers abroad continue to gradually recover. In May, remittances added USD 2.17 billion, which represents a 1.0% expansion over the value recorded in the same month last year. The print came in below April's 4.7% expansion but was in line with market expectations, as weak U.S. payroll data suggested a deceleration. Despite the recovery experienced during the last year, remittances are still 17.8% below the USD 2.64 billion pre-crisis peak reached in October 2008. Furthermore, as the labour market in the United States where a vast majority of Mexican remittances originate is expected to improve only slowly going forward, the recovery in remittances is likely to remain depressed.