Mexico | Remittances Drop 12.1% in April Compared to the Previous Year

Summary

Amid a proposal to create a special tax in the United States on remittances sent abroad, the Bank of Mexico announced the amount of remittances sent to Mexico in April 2025, which was $4,761.2 million.

Key points

• Key points:
• Comparing remittances sent in April 2025 with those sent in April 2024, a 12.1% drop is observed, one of the sharpest since late 2012. There are two hypotheses behind this drop: the first is the uncertainty caused by trade policy in the United States, which translates into declines in soft indicators such as consumer confidence, and the second is the depreciation of the dollar.
• A difference of +1.7 points was recorded in financial stress among adults in households that did not receive remittances (greater relative stress) compared to those that did.
• In April 2025, 8,383 U.S. Border Patrol apprehensions were recorded at the land border with Mexico, marking three consecutive months below 3,500 incidents, reflecting the deterrent effect of President Trump's immigration policies.
• With a 3.5% tax, the greatest impacts on remittance flows for 2026 could occur in Tamaulipas (-3.2%), Guerrero (-3.2%), Puebla (-2.6%), Oaxaca (-2.6%), and Veracruz (-2.5%).
• The U.S. Senate, with a 53-47 Republican majority, is facing significant internal debates that could modify the bill's content; little to nothing is known about whether there is any intention to eliminate the section regarding the remittance tax. The final version of the budget bill may be ready before July 4.

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