Tuesday, June 18, 2024

Remittances from abroad: 17 months of steady growth

Remittance payments topped US $4.4 billion in September, a 23.3% increase over the same month last year as the upward trend continues: the monthly total has been on the increase every month since May 2020. 

September’s total makes seven consecutive months with payments above $4 billion. The financial services firm BBVA forecasts that the year could close with a total exceeding $50 billion; 2020 holds the record for the highest total at just over $40 billion.

The Bank of México reported that the value of remittances from January through September was $37.3 billion, substantially higher than the total for the first nine months of 2020, which fell just short of $30 billion. It was an annual increase of 24.6% for the first three quarters of the year.  

The value of each remittance payment also increased: in 2019 the average was $328, in 2020 that rose to $347 and jumped again to $381 so far this year. 

Analysts from Banorte said the positive trend had continued despite the termination of benefits in the United States. “The rate of advance remains strong despite a more modest growth outlook and the expiration … of the additional benefits of unemployment in the United States.”

BBVA analysts added that low unemployment levels of Mexican migrants in the U.S. had contributed to the high remittance levels. Unemployment has been lower than the U.S. average and lower than the pre-pandemic levels, the analysts said.  

With reports from Milenio 

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