Mexico | Are more Remittances or Foreign Direct Investment arriving?

From its lowest point, in 2013, to 2022, remittances to Mexico have grown a total of 162.3%, positioning it as one of the main sources of foreign currency for the country. Thus, an important question to analyze is: Does Mexico receive more currency flow through remittances or through Foreign Direct Investment?

Key points

• Key points:
• Remittances start the year on the “right foot” with growth in January of 12.5% at an annual rate. Remittances maintain a nine consecutive year upward streak, since 2014.
• The amount of Foreign Direct Investment (FDI) in Mexico was 35.3 billion dollars in 2022, while remittances reached 58.5 billion dollars. Remittances were 65.8% higher than FDI during 2022..
• In eight states of the Mexican Republic (Veracruz, Zacatecas, Michoacán, Tabasco, Oaxaca, Chiapas, Morelos and Guerrero), the flow of remittances exceeds the amount of FDI received in 2022 by more than 1,000%.
• The data show the existence of a negative correlation by entity between the level of poverty and FDI per capita. Pearson's coefficient was -0.6015.

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