Record-Breaking $64.2 Billion in Remittances Expected This Year

According to the Inter-American Development Bank, Mexico is projected to receive a record high of 64.2 billion dollars in remittances by the end of 2023, an increase of 9.8 percent from the previous year. However, despite this growth, the value of these remittances in Mexican currency will decrease by 3.4 percent due to the appreciation of the peso against the dollar.

Despite this decrease in value, remittances will still account for 3.9 percent of Mexico’s GDP. However, this growth rate is 41 percent lower than the estimated growth rate of Mexico’s GDP per capita, indicating a relative decline in the income levels of Mexican families that receive remittances compared to those that do not.

Mexico remains the largest recipient of remittances in Latin America and the Caribbean, receiving 41.2 percent of all transfers to the region. The majority of these funds come from the United States (96 percent) and Canada (1.8 percent), where most Mexican immigrants reside.

The Inter-American Development Bank also noted a decline in Mexican migrants in the US but stated that migratory flows do not have an immediate impact on remittances as migrants need time to settle and find work before they can start sending money.

Overall, remittances received by countries across Latin America and the Caribbean are expected to reach a total of 156 billion dollars by 2023, with significant growth predicted for Central American countries (13.2 percent), Mexico (9.8 percent), and South America (7.9 percent).