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 Business News | May 2007 
Mexico Remittance Growth to Slow in 2007 - Cenbank
 Reuters
| | The flow of dollars is in danger as the U.S. economy slows, particularly in the construction sector where many Mexican immigrants work. |
The flow of remittances from Mexicans living abroad will grow as little as 5 percent this year due to tougher migration controls and an economic slowdown in the United States, a top central bank official said.
After years of spectacular growth, remittances from Mexicans living in the United States make up Mexico's second-biggest source of foreign currency, and surged more than 15 percent last year to a record $23 billion.
But the flow of dollars is in danger as the U.S. economy slows, particularly in the construction sector where many Mexican immigrants work, and as U.S. authorities make it harder for would-be illegal workers to get across the border.
Jesus Cervantes, a top statistician at the country's central bank, told Reuters remittances would probably only grow by about 5 or 6 percent this year and not likely exceed $24.5 billion.
With the economy cooling, remittances grew at an annual rate of 3 percent in the first three months of 2007, down from a 28 percent rise during the same period last year.
"Migrating (to the United States) is already much more difficult and that is evident in the remittance income," said Cervantes.
Some economists fear remittances could even decline this year and worry that a diminished flow could have a negative effect on economic growth, which the government already sees slowing from 4.8 percent last year to 3.3 percent this year. |
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