Mexico: Remittance inflows ease somewhat in March
Remittances totaled USD 2.6 billion in March, a 4.0% increase in year-on-year terms and below the 6.9% rise recorded in February. March’s figure was driven by a solid increase in the number of transfers to Mexico, which slowed somewhat from February’s 6.9% year-on-year expansion—a 13-month high—to 5.3%. Meanwhile, the average remitted amount ticked down from USD 316 a year ago to USD 312.
In line with March’s healthy figure, remittances registered an all-time high of USD 29.2 billion in the 12 months up to March, marginally above the USD 29.1 billion figure recorded in the twelve months up to February. March’s 12-month rolling figure was up 6.3% in year-on-year terms, easing from the 7.3% increase recorded in the 12 months up to February and the softest expansion in four months.
Remittance inflows are expected to continue trending upwards, supported by a very tight labor market in the United States. Although employment growth north of the Mexican border is expected to decelerate amid a nearly depleted pool of available skilled workers—thus weighing on growth in the number of transfers—higher salaries should boost the average remitted amount and broadly offset softer job growth.