Mexico | Streak of 46 months with growth ends, Remittances fall 3.3% in March

Remittances to Mexico fell 3.3% in March. Thus, they culminate a streak of 46 consecutive months with growth, which lasted between May 2020 and February 2024. During this period, remittances increased in annualized terms from 38.8 billion to 63.6 billion dollars, which is equivalent to a total increase of 64.1%.

Key points

• Key points:
• In March, 5,021 million dollars entered Mexico through family remittances, which is equivalent to a contraction of 3.3% in annual terms.
• This puts an end to a streak of 46 consecutive months with increases, which began in May 2020 and ended in February 2024. During this period, remittances grew in annualized terms from 38.8 billion to 63.6 billion dollars, which is equivalent to a total growth of 64.1% in dollars.
• Considering that the exchange rate was quoted in March at less than 17 pesos per dollar, in addition to the inflationary factor, remittances contracted 15.2% in real terms compared to a year ago, a very significant drop in the income of recipient families of these resources.
• Remittances to other countries in Latin America and the Caribbean also had a lower performance in March than those recorded in January and February. Remittances to El Salvador fell 4.9% and to Honduras decreased 4.6% during the month of March.
• We must be aware of the data that emerges in these months to be able to understand if the recent slowdown in remittances to Mexico and several countries in Latin America and the Caribbean is explained by a seasonal factor (Holy Week in March) or we are looking at signs of a possible economic slowdown in the United States.

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