Puerto Vallarta, Mexico – In a recent report released by the Bank of Mexico (Banxico), it has been revealed that Mexico received approximately 4.9 billion dollars in remittances during the month of November last year. This figure represents the lowest influx of remittances into the country since February 2023.
Although this drop in remittance flow is noteworthy, it’s essential to highlight that, on an annual basis, remittances exhibited a modest 1.9 percent increase during the reference month. Nevertheless, this growth rate is the slowest seen since April 2020, when remittances fell by 2.0 percent.
The data further disclosed that the total remittances were derived from approximately 12.7 million transactions, with the average amount sent being 386 dollars. This indicated a 4.0 percent increase in the number of remittances being sent but a 2 percent contraction in the overall amount sent by Mexican nationals living abroad, particularly in the United States.
On a monthly basis, the inflow of remittances into Mexico declined by 16 percent, marking the second-highest drop since January 2023 when it fell by 17 percent. The average remittance amount also saw a decrease of 2.7 percent compared to October 2023.
Analysts have attributed this slowdown in remittances to a combination of factors. Ramsé Gutiérrez, co-director of Investments at Franklin Templeton Mexico, suggested that the end of fiscal stimuli in the United States and the persistent inflationary pressures in the neighboring country may have contributed to the decline in remittance flow.
Gabriela Siller, director of economic analysis at Grupo Financiero Base, noted that despite this recent dip, the accumulated remittances over the last 12 months amounted to an impressive 63 billion dollars. This marks the continuation of a remarkable trend, with 43 consecutive months of growth in remittances.
In addition, the accumulated amount of remittance income for the period of January to November in the previous year totaled 57 billion dollars, signifying an annual increase of 8.7 percent. This figure represents an impressive 98.7 percent of the total remittances received in the entire year of 2022.
Banxico also pointed out that the accumulated flow of remittance income for the last twelve months, from December 2022 to November 2023, reached 63.1 billion dollars. This figure surpassed the twelve-month accumulated flow recorded in the previous October, which stood at 63 billion dollars (November 2022 to October 2023).
While the recent decline in remittances is a topic of concern, the overall trend still underscores the significant economic support provided by Mexicans living abroad to their families back home, making remittances a crucial aspect of Mexico’s economic landscape.
Puerto Vallarta, Mexico - In a recent report released by the Bank of Mexico (Banxico), it has been revealed that Mexico received approximately 4.9 . . .
