Mexico City – Remittances to Mexico totaled 3.9 billion USD in January, representing a 19.6% year-on-year surge. This follows December’s 30.2% year-on-year increase, and was likely aided by a strong U.S. labor market.
There were 10,589 remittances sent in January with an average value of $371 USD. That was 10.4% more payments than in January last year and the average payment was 8.3% higher.
However, the total received for the first month of 2022 was still down from the previous month: 17.2% less than in December 2021, when $4.75 billion was received. January also ended a run of eight consecutive months with payments over $4 billion.
On a cumulative basis up to January, remittances amounted to USD 52.2 billion, above the USD 51.6 billion recorded in December. January’s 12-month moving average signaled a 26.6% increase from a year earlier (December: +27.0% year-on-year).
2021 was a record breaking year for remittances to Mexico, which were $10 billion higher than in 2020. Analysts project remittances to rise to USD 50.7 billion in 2022. For 2023, the panel sees remittances at USD 48.9 billion.
Remittances are Mexico’s second largest source of foreign currency after automotive exports.
President López Obrador has thanked the 38 million Mexicans in the United States for their contribution to the Mexican economy on various occasions. He has described those migrants as heroes and estimated that their payments benefit around 10 million families.
Sources: BBVA Research • California-Mexico Center
