Remittance money: more than oil revenues. Remittance money: more than oil revenues.

Remittances totaled more than oil income

Money sent from abroad came to $24.8 billion last year, up 4.75%

Remittances sent home by Mexicans working outside the country surpassed petroleum revenues in 2015 for the first time.

ADVERTISEMENT

There was a 4.75% increase in money sent from abroad, most of which comes from the U.S., to total US $24.8 billion last year, up from $23.6 billion in 2014, said the Bank of México.

The bank said it was the first time remittances had totaled more than petroleum revenues since it began tracking them in 1995.

Oil revenues last year totaled $23.4 billion.

An important factor in the increase in remittances is the jobs created by economic recovery in the U.S.

Some 11 million Mexicans are believed to be living in the U.S. and many work in construction. Remittances, 97% of which are sent electronically, averaged $292 last year.

Prior to the North American Free Trade Agreement, which took effect in 1994, petroleum exports represented almost 80% of U.S. dollar income. Banorte economist Alejandro Cervantes told The Associated Press that today that figure is less than 20%, demonstrating how much the Mexican economy has diversified.

The top source of foreign income is manufacturing exports.

Source: CNNExpansión (sp), AP (en)

Stories from our archives that you might enjoy

  • Güerito

    Further evidence that the “net zero” immigration meme was a load of bull.

    • PintorEnMexico

      Not necessarily. Oil prices are down worldwide and employment is up in the US.

      • Güerito

        Ignoring the relation to oil dollars, the amount of dollars received in remittances reached a new high in 2015.

        I say “further evidence” because I’ve already posted about how the much touted Pew study, pointing to “net zero” migration from Mexico to the US, ignored a huge surge in Mexicans heading to the US since the middle of 2014:

        http://mexiconewsdaily.com/news/mexicans-coming-back-for-family-economics/

        “Pew’s study goes through 2014. In response to various reports showing Mexican migration to the US in 2015 is way up, Pew admitted the data shows a recent surge of new Mexican immigrants in 2015, not reflected in their study mentioned in the article above.

        It’s a net increase of about 250,000 so far in 2015, which completely wipes out the supposed “net loss” of 140,000 from 2009-2014.

        Pew: “To go into more detail, our analysis with more recent CPS data through September 2015, shows that the “net inflow” of Mexican immigrants over the previous year was about 250,000.”‘

        • AM

          The point made by PintorEnMexico regarding the downward pattern of oil prices is not only true, it’s also the point of the article to compare remittances with oil income. The point is not to “ignore the relation to oil dollars” – come on focus you can do it. Not only is it true that we have reached net zero, it’s also true that Mexico’s economy is growing – well below Mexico’s potential growth, but still growing. When there are jobs people are less inclined to migrate, even if it is to the US (imagine that). Remittances have increased, but Mexico’s economic strength continues to be its manufacturing base. Mexico’s electronic industry has grown enormously and it produces the most automobiles of any North American nation. Aerospace is also growing. There has also been a demographic shift in Mexico. People in Mexico are having less children, on par with the US. Consequently, Mexican immigration to the US, has been, and will continue to decline, if for no other reason. Even if Americans pray to the heavens for cheap Mexican labor, there will come a day when that labor will not be there. This is a simple fact of demographics!

          So why all this talk about the “dangers” of illegal immigration and the rise of Donald Trump and his wall as immigration continues to decline? If Americas were truly serious about immigration why didn’t they tackle it before when immigration numbers were in the millions? It’s obvious that Americas just want to find a scapegoat for their own shortcomings. The WASP is just nervous about his place in the world now that its no longer the world’s only superpower. It’s quite amusing watching the WASP squirm. I’m enjoying it 🙂

          • Güerito

            My point, which PIM responded to, was that increasing remesas is additional evidence that Mexicans continue to head north, most illegally, looking for economic opportunity.

            Pew Research Center began the whole “net zero” meme, but I quote them above indicating there has been no decrease in Mexicans heading to the US. The net increase of 250,000 in 2015, that Pew acknowleged, completely wipes out any losses in the recession years. In other words, Pew now doesn’t believe their own meme!

            But you continue to say “we have reached net zero.” If you say the the sky is green, that doesn’t make it green.

            “So why all this talk about the “dangers” of illegal immigration and the rise of Donald Trump and his wall as immigration continues to decline?”

            A certain commentator on this site loves this sleight of hand, too.

            a. Pew says immigration from Mexico hasn’t declined.

            b. even if we said it did (contrary to fact), there has been a huge increase, often called a “surge,” in illegal immigration from other countries, notably Central America. But they’re coming from all over the world, really.

            Are you focusing yet?

          • AM

            Your point is so weak that PEM was able to refute it in one sentence – oil is down and employment is up. Remittances are not up because there was a “surge” in immigration from Mexico. My point goes further than that. I get my information from the Pew Research Center report from November 19, 2015 which clearly states the following: Net migration to the US from Mexico 1995-2000 was 2,270,00 – from 2005-2010 there was -20,000 net immigrants – from 2009-2014 there was -140,000 net immigrants. There are several reasons for this, e.g. Mexican economy is growing, demographics, American economy is not as robust, family reunification, more boarder enforcement. There was a surge of immigrants to the US, as you point out, but that was from Central America and “all over the world really.” Central America and “all over the world really” is not Mexico (you still with me). Again, why sound the alarm on illegal immigration from Mexico now when, if you look at the overall pattern, Mexican immigration continues to decline? Why didn’t this racist uninformed rhetoric surface back in 2000?

            I have seen the Donald Trump commercials showing images of “Mexican” immigrants running towards the boarder (Btw that footage was from Morocco Lol). What happens to a country when half of its political infrastructure is supporting a man that’s a bigot and incompetent? My, my! Yet, the $24.8 billion increase in money sent from abroad, “MOST of which comes from the US,” as the article points out, is chump change compared to Mexico’s $1.3 trillion economy.

          • Güerito

            “Today, the total number of Mexican immigrants entering is EQUAL to the number of people leaving, i.e. NET ZERO. You are wrong when you say that net zero is “a load of bull.” I haven’t seen the report about the 250,000 number but you probably got it from Breitbart, which doesn’t distinguish Mexican immigration from Central American immigration (gee, I wonder why? Not really).”

            I rest my case.

          • PintorEnMexico

            Just for the sake of clarity, intellectual honesty, and community harmony let me say that I am agnostic and indifferent to the number of illegal Mexicans in the US. I wouldn’t mind if there were 22 million, I think we’re better off having them. My original post was in reply to Güerito’s assertion that the rise of remittances relative to oil revenues is evidence against “net zero” or Coke Zero whatever. I’m saying the numbers can be explained by falling oil prices and (as stated in the article) increased employment in the US (yay Obama). Multiplying the average remittance of $292 by 250,000 (the number posited by Güerito and Pew?) you get something way way smaller than the more than one billion dollar increase in remittances.

          • Güerito

            $292 USD is the average monthly remittance sent. The article above should make that clear.

            Check the math. There are about 7-8 million households in Mexico receiving remittances. An average of about $3,500 USD a year, gets you the $20 billion + dollar figure.

            I hadn’t thought to check it, but 250,000 sending that average amount yearly comes remarkably close to 1 billion USD! Thanks for that!!

            http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuadro=CE81&sector=1&locale=en

            http://geo-mexico.com/?tag=remittances

          • AM

            Interesting, yet not so. Now you’re quoting in Spanish Lol very amusing thank you for that. Your chart shows 1 million immigrants coming to the US, which is an increase and rightly so; however, it does not show the 1 million Mexican nationals that have moved back to Mexico, thus creating what they call net zero migration. It’s really not that complicated. Do you remember integers?

            1 + (-1) = 0

            Alas, this has become a futile effort to make myself understood. Very well, who should people believe? The Wall Street Journal, LA Times, Washington Post, NY Times, the highly recognized think tank Woodrow Wilson Center, Doug Massey – Princeton professor and one of America’s preeminent immigration scholars OR…Guerito and his chart? Btw what grown man calls himself guerito?

      • cnourse57

        The U.S. official, government figures on unemployment in America are fraudulent. They count only the people who are currently receiving unemployment benefits. But time limit for receiving those benefits has been reduced. When a person uses up all their time of getting benefits, they are cut off; and the person is no longer counted as being unemployed, even though he still does not have a job.

        • Güerito

          Both countries unemployment rates are grossly inaccurate.

          Mexico’s 5% is completely ridiculous. Even if you count the millions earning a living on the street juggling or breathing fire at intersections, or selling nuts or pirated dvds on street corners.

          You’re right that the US unemployment rate doesn’t count those who’d like to work but have simply dropped out of the labor pool after not finding a job.

  • James Smith

    In Mexico the longest lines are in the banks. On the US side of the border the longest lines are in the Western Union and Money Gram offices.

    • AM

      For money that Mexicans WORK for, and for a product that Americans want for cheap because they can’t get enough Made in China merchandise at Walmart. Go tell it to those people outside the Starbucks holding their little cardboard cut outs.

      • James Smith

        LOL! Too much cholo….too much.

  • Carter_Burger67

    Trump can make Mexico pay for the wall and it will be easy. 10% tax on these transactions.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT