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Remittances to Mexico hit third record high in July

Mexican migrants broke a remittances record on March and then again in June despite the pandemic

Remittances are an important part of Mexico's GDP - Photo: File photo/EL UNIVERSAL
03/09/2020 |15:22Leonor Flores |
Redacción El Universal
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In July, remittances sent to Mexico by immigrants abroad surpassed analysts’ forecasts.

However, they moderated their growth rhythm compared to the previous month, according to information from Mexico’s central bank (Banxico), which could mirror lower savings by fellow citizens.

Banxico informed on September 1 that remittances represented USD $3.532 billion, a 7.% increase compared to the same month in 2019 and superior to the USD $3.344 billion expected by experts.

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Nevertheless, they mitigated the 9..9% increase registered in June.

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Mexicans

abroad, mainly in the U.S., sent an average of USD $343 each, a 1.3% variation during last July.

From January to July 2020, the flow of remittances was USD $22.822 billion, which represented a 10.1% increase compared to the same period in 2019.

They will reach USD $40 billion

Last year, remittances reached a total of USD $36.438 billion.

Banorte kept its forecast for 2020 for remittances flow that will be similar to last year with USD $36 billion.

Nonetheless, Mexico’s President Andrés Manuel López Obrador estimated that this year, remittances could hit USD $40 billion.

During his Second Government Report, he stressed the effort remittances symbolize for fellow citizens who, despite the pandemic, keep sending money to their relatives with a 10% increase.

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