Remittances to Mexico increase

Money transfers to Mexico have grown and signify that the county’s economy is rebounding, according to data released earlier today. The twelve percent increase compared to May 2009 marks the second consecutive month of remittance growth to Mexico based on figures from the central bank. The data represents a turnaround after months of decreased money transfers since the end of 2008.

Not all was good news, however; the boost in remittances during May was not enough to cover the losses during the first four months of this year. $8.7 billion in remittances was sent to Mexico between January and May 2010, which was 4.6% less than in the same period last year.

Remittances are vital to Latin American economies though money transfers to the Americas have fallen since the global economic downturn. Some countries like Bolivia continue to struggle in turning around their remittance woes while others like El Salvador have seen increases that aid their respective economies. Could sustained “robust economic growth” throughout the region see a boost in remittances throughout Latin America?

Recent growth spurts around Latin America have surpassed the expectations of many governments themselves. Brazil, the region’s rising power, is leading the regional recovery from the downturn of 2009, growing 9 percent in the first quarter from the same period last year. Brazil’s central bank said Wednesday that growth for 2010 could reach 7.3 percent, the nation’s fastest expansion in 24 years.

After a sharp contraction last year, Mexico’s economy grew 4.3 percent in the first quarter and may reach 5 percent this year, the Mexican government has said, possibly outpacing the economy in the United States.

Image- LAHT
Online Sources- LAHT, El Informador, Bloomberg, The Latin Americanist, New York Times, EPA, El Universal