remittances

By Adam Thomson in Mexico City

Are remittance flows to Mexico finally recovering? To judge by figures released by the country’s central bank on Tuesday, the answer may be a tentative “yes”.

The amount of money sent back home in April by Mexicans living abroad was $1.78bn, the first year-on-year increase in the last 17 months, and above private-sector forecasts.

That can only be good news for the millions of families that have come to rely on these financial flows to fund everything from putting food on the table each day to paying for school supplies, medical bills and even the construction of homes.

But whether the monthly increase truly represents a turn-around is still unclear. It is true that improving macroeconomic data from the US, particularly in employment and manufacturing, suggests that there is a solid foundation for optimism.

As a research note published on Tuesday morning by Economía Ixe, part of Ixe bank, states: “The recovery in the north American labour market is starting to turn into a greater disposable income for Mexican migrants.”

But don’t get too excited just yet. Read more

Simone Baribeau

Monthly remittances to Mexico in November hit their lowest level since February 2005, Mexico’s Central bank reported today.

The payments were 14.4 per cent below their year ago levels, and more than 43 per cent below the high hit in October 2008. But the speed of the annual decline slowed to its lowest level since March as the US economy sheds fewer jobs.