Mexico City – Mexico saw a new 12-month high in remittances this October, with US$5.635 billion arriving from abroad. However, the figure represents a 1.7% decrease compared to the same month last year, marking seven straight months of decline.
Accumulated remittances to Mexico from January through October 2025 totaled US$51.34 billion, 5.1% lower than the amount received during the same period last year. Despite these adjustments, remittances continue to play a central role in supporting millions of households across the country.
A notable shift emerged in how funds were received. For the first time in five years, more than half of electronic remittances – 50.1% – were deposited directly into bank accounts instead of being collected in cash. Analysts expect this move toward financial inclusion to keep growing as more families opt for formal banking channels.
Bank of Mexico data shows that Mexico registered 14 million transactions in October, down 5.4% year-on-year, though the average transfer increased 4.1% to US$403. Electronic transfers accounted for 99.1% of all remittances, underscoring the preference for digital payment methods.
While Mexico experienced a dip in inflows, other Latin American nations saw the opposite trend. Honduras received 24% more remittances in October, Guatemala 19.5%, El Salvador 16.3%, Colombia 5.4%, and the Dominican Republic posted an 11.9% rise in September. These gains suggest that external economic or policy factors affect countries differently, with migrant labor dynamics varying across the region.
Mexico’s decline has been linked to shifting labor integration for new migrants in the United States. Even so, remittances remain a lifeline, with projections indicating they will total close to US$60 billion in 2026.
Despite the slowdown, these transfers continue to be a vital contributor to household spending power and national economic stability.
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