Remittances dropped 4.6% in 2025, the biggest annual decline in 16 years

Remittances to Mexico from abroad declined by 4.6% in 2025, to a total of US $61.8 billion, marking the biggest fall since 2009, the Bank of Mexico (Banxico) reported on Tuesday. 

Remittances contributed 3.4% of Mexico’s GDP in 2025, according to an analysis by Banco BASE’s director of economic analysis, Gabriela Siller. 

Indigenous waiting in line
Mexicans living in remote pueblos often have to wait in line to receive their remittances from relatives abroad, which for many, is most of what they have to live on. (Claroscuro)

Electronic transfer was the method of preference for senders, accounting for 99.1%, or $61.2 billion, of remittances sent. 

Of the total remittance income sent to Mexico electronically, 49.6% was collected in cash, totaling $30.3 billion. Remittances sent as bank deposits accounted for 50.4% of the total, or $30.9 billion.

Most remittances sent to Mexico come from Mexicans who live and work in the United States. 

The Trump administration’s aggressive deportation agenda has created fear among the Mexican migrant community, causing many to limit their movements outside their homes. 

In addition, the worsening United States labor market and a stronger peso against the dollar were cited as factors driving the decrease. 

A growth in remittances was observed during just three months last year: January, March and December.

In December, remittances totaled $5.3 billion, which was 1.9% higher than in the same month in 2024. The average remittance sent in December was $408 per transfer, which is slightly higher than the $375 average recorded in December 2024.

The three states that received the highest quantity of money from remittances were Guanajuato, Michoacán and Jalisco, accounting for 8.9%, 8.7% and 8.3% of total transfers, respectively.

With reports from Expansión

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