Searcher

Mexico | Inflation stalls growth of remittances: +0.1% in real terms in October

Published on Thursday, December 1, 2022 | Updated on Tuesday, December 6, 2022

Mexico | Inflation stalls growth of remittances: +0.1% in real terms in October

Remittances have accumulated a 30-month consecutive upward streak, since May 2020. Despite their dynamism, the inflation in basic basket products (+8.4% in October 2022) and the strength of the Mexican Peso against the US dollar have stagnated the growth of remittances in real terms.

Key points

  • Key points:
  • In the month of October, 5.360 million dollars were received in remittances in Mexico, +11.2% compared to 2021, with which they accumulate a streak of 30 consecutive months of growth.
  • Despite the momentum of the flow of remittances in dollars, inflation in the basic basket in Mexico, +8.4% annualized in October 2022, coupled with the strength of the Mexican Peso against the US dollar, cause the growth of remittances in real terms to stall, they only increased 0.1% in October.
  • At BBVA Research, we estimate that remittances to Latin America and the Caribbean could grow more than 12% by the end of 2022 and add a flow of 146 billion dollars, higher than the 4.4% projected in mid-year by the World Bank.
  • 80% of the remittances that arrive in Latin America and the Caribbean are received by 6 countries: Mexico, Guatemala, the Dominican Republic, Colombia, Honduras and El Salvador.

Documents to download

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment.

Load more

You may also be interested in