According to the Inter-American Development Bank, remittances to Mexico are projected to reach a historical high of 64,247 million dollars at the end of 2023. This represents an increase of 9.8 percent from the previous year. However, due to the appreciation of the peso against the dollar, its value in Mexican currency will drop by 3.4 percent and even more after accounting for inflation.
Despite this decrease in value, these remittances will still make up 3.9 percent of Mexico’s GDP. However, this growth rate is 41 percent lower than the estimated growth rate of Mexico’s GDP per capita, indicating a relative deterioration in the income of Mexican families that received remittances compared to those that did not.
Mexico remains the main recipient of remittances in Latin America and the Caribbean, receiving 41.2 percent of all transfers to the region. The majority of these funds come from the United States (96 percent) and only 1.8 percent from Canada, where most Mexican emigrants live.
The Inter-American Development Bank also noted a decrease in Mexican migrants in the United States but stated that migratory flows do not have an immediate effect on remittances as migrants need time to settle and find work before they can start sending money.
Overall, remittances received by countries in Latin America and the Caribbean are expected to reach 156 billion dollars during 2023 with significant growth in Central American countries (13.2%), Mexico (9.8%), South America (7.9%).