Remittances continue to break records

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Record of remittances in the first semester reaches 23 billion US dollars, the largest increase in 15 years

With a year-on-year increase of 22.4%, remittances that arrived during the first half of the year reached their highest increase since 2006.

Remittances continue to break records. During the first half of the year, remittance income achieved its largest increase since 2006.

So far this year, the value of remittances reached 23,618 million US dollars, 22.4% more than in 2020, mainly driven by the economic recovery in the United States that causes increases in remittances thanks to better salaries and greater laxity of immigration authorities.

During June, the collection of remittances was 4,439 million dollars (MD), lower than the 4,514 MD that arrived in May, but they were higher by 25.54% compared to the 3,536 million of the previous year and slightly above the expectations of the analyst who expected revenues of 4,356 MD.

The deputy governor of the Bank of Mexico (Banxico), Jonathan Heath, highlighted that “remittances spun for four consecutive months in June with a flow of more than 4 billion dollars, to register a 12-month flow of 44,929.9 million dollars.”

Although the upward trend in remittances is not new, highlighting the period between 2020 and so far in 2021, it is the magnitude of the increases seen each month that is striking.

On average, during the first semester, the inter-annual increase in remittances was 21.6%, a figure that, unlike other economic indicators, is not strongly distorted by the base effect, since in the case of remittances, April 2020 was the only month of contraction of the year, which was only -2.05%.

Source: Arena Publica

Mexico Daily Post