Thursday, December 26, 2024

Record remittances in first 6 months, though numbers declined in June

Mexicans living outside the country sent a record amount of money home in the first six months of this year, compared with the same period in other years.

According to Mexico’s central bank, remittances reached US $16.882 billion between January and June.

Within that period, however, remittance numbers have been evening out. In June, Mexicans abroad sent back $3.118 billion, 1.4% less than in May, and less than in June 2018, when the number was US $3.14 billion.

The number of transactions grew by 1.6% compared with June 2018, but the average amount per transaction fell by 2%.

Goldman Sachs economist Alberto Ramos told the newspaper El Economista that the slowdown should be carefully monitored.

“Remittances are important on the macroeconomic level, for financing, and for private consumption, especially for low-income families, which also tend to be the principal receivers,” he said.

Ramos added that in June, the average remittance received per household hit its 2019 high, as 1.8 million Mexican households received an average of US $336 from family members working in other countries. Based on that metric, June was the best month for remittances since November 2018, when the figure was US $342.

Remittances represent Mexico’s second most important source of foreign currency. Automotive exports are No. 1.

Most of the money is sent from Mexicans working in the United States.

Source: El Economista (sp)

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