Mexico Reaches a New Historical Record in Remittances

The Bank of Mexico (BANXICO) on Tuesday reported a new historical record of US$40.6 billion in remittances sent by Mexicans abroad, representing an 11.4 percent increase as compared to 2019.

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BANXICO noted that 98.9 percent of the remittances were received through electronic transfers. Last December, the country received US$3.6 billion in remittances, surpassing the figures recorded in November and October.

The money average received by recipient families amounted to US$339 while only 0.76 percent of the payments were delivered in cash or in kind. 

In 2020, remittances represented 3.8 percent of the gross domestic product, thus exceeding the federal budget approved for the Public Education, Health, Labor and Social Welfare, and Culture Ministries as a whole.

The transferences came mainly from Mexican migrants in the U.S and represented the second-largest source of foreign currency, placing ahead of foreign direct investment, the agri-food, and oil industries.

Even though Michoacan State had received most of the remittances for 15 years, Jalisco State placed first last year by receiving US$4.1 billion. 

The previous historical record was reached in December 2019 when remittances reached US$36.1 billion.