Mexico | Dependence on remittances will reach 3.8% of GDP in 2020

In November 2020, 3,381 million dollars entered by remittances (+ 15.6%). The U.S. economic stimulus that have also benefited Mexicans, the sending of remittances from cross-border workers and commuters, and the appreciation of the dollar against the peso, are factors that explain the increase in remittances in 2020.

Key points

• Key points:
• In the month of November 2020, 3,381 million US dollars entered by remittances, +15.6% compared to the same month of 2019.
• Remittances accumulate three consecutive months with double-digit growth, averaging a monthly increase of close to 15% between September and November.
• The U.S. economic stimulus that have also benefited Mexicans in that country, the sending of remittances from cross-border workers and commuters due to mobility restrictions, and the appreciation of the US dollar against the peso, are some factors that explain the strong growth of remittances to Mexico during 2020.
• Due to the increase in remittances and the contraction of the Mexican economy during 2020, it is estimated that Mexico's dependence on remittances could reach a historical maximum of 3.8% of its GDP, 0.9 percentage points more than 2019 (2.9%).

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