Remittances to Mexico keep falling

The percentage of remittances to Mexico fell by its lowest margin in 12 years as Mexican Central Bank president Guillermo Ortiz Martinez confirmed yesterday.

Over the first half of this year an estimated $11.6 billion was sent to Mexico yet the percentage dipped by 2.2% in the previous quarter. That amount was greater than expected by economic experts who originally predicted a drop of 1.5 to 2%. Unfortunately, the trend will continue according to Ortiz Martinez who observed that several factors accounted for the decrease in remittances:

The weakening U.S. economy, especially in the construction sector…the problems facing those who migrate into the U.S. including the increased vigilance along the border, and the difficulties undocumented immigrants face when finding work. – [ed. personal translation]

Mexico’s economy has been hurt by the recent changes after having experienced years of double-digit increases in money transfers. According to one official in the state of Michoacán, rural communities have been especially hit hard since remittances serve as their main source of income.

The problem of lower remittances has affected the entire region; as we noted in March, a report from the Inter-American Development Bank showed that Central American economies are reeling from slower growth in money transfers.

Image- La Voz

Sources (English)- Washington Post, Council on Hemispheric Affairs, The Latin Americanist, The Statesman

Sources (Spanish)- Excelsior, El Sol de Mexico, CNNExpansion.com