Mexico | Remittances grew 16.5%, but due to inflation, households received only 8.2% more

Summary

Inflation has also hit the remittances-receiving households in Mexico, although they grew 16.5% in US dollars in April, they increased 8.2% in real terms. Something similar happened in March, the flow of remittances in US dollars increased 12.9%, but in real terms they advanced 4.1%.

Key points

• Key points:
• In April, 4,718 million US dollars entered through remittances, which is equivalent to an annual increase of 16.5%, spinning a streak of 24 consecutive months with growth.
• Inflation has also hit the remittances-receiving households in Mexico, although they grew 16.5% in US dollars in April, they increased 8.2% in real terms. Something similar happened in March, the flow of remittances in US dollars increased 12.9%, but in real terms they advanced 4.1%.
• Due to the war between Russia and Ukraine, it is estimated that the flow of remittances to the Europe and Central Asia region will contract 1.6% in 2022, given that an important part of this income is intra-regional remittances.
• Latin America and the Caribbean has become the region with the greatest dynamism in the flow of remittances, in 2021 it is estimated that they grew 25.3%.
• Mexico is positioned as the second recipient of remittances worldwide. In the first two years of the pandemic, remittances to Mexico have grown by nearly 40%, while remittances have shrunk by 22% in China. This drop can be explained by the strong restrictions on international mobility imposed by that country, which possibly impacted its migratory dynamics.

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