Mexico | Appreciation of the peso and inflation affect remittances: -9.7% real in April

Summary

Despite the increase in remittances in dollars, households in Mexico received 9.7% fewer resources in real terms in April, explained by: 1) the appreciation of the peso against the US dollar of 9.8% between April 2022 and April 2023, and 2) an inflation of 6.3% in the same period.

Key points

• Key points:
• During the month of April, 5,003 million dollars entered Mexico as family remittances, +6.3% in annual terms. Thus, remittances have gone up for 36 consecutive months, starting in May 2020.
• Remittances will continue to grow in 2023 but at a more moderate pace compared to the previous two years, an annual increase of a single digit is estimated for 2023.
• It is observed that remittances to the main recipient countries of Latin America and the Caribbean slowed down their growth in the month of April, as was also observed in the case of Mexico.
• Common factors, such as economic dynamism and the volume of immigrants in the United States, explain this synchrony in the flow of remittances in the Latin American and Caribbean region.

Geographies

Topics

Tags