According to the Inter-American Development Bank, remittances to Mexico are projected to reach a record high of 64.247 billion dollars at the end of 2023, representing a 9.8% increase from the previous year. However, due to the appreciation of the peso against the dollar, its value in Mexican currency will decrease by 3.4%, and even more after factoring in inflation.
Despite this decrease in value, these remittances will still contribute 3.9% to Mexico’s GDP. However, this growth rate is 41% lower than the estimated growth rate of Mexico’s GDP per capita, indicating that Mexican families who receive remittances have seen a relative decline in their income compared to those who do not receive them.
Mexico remains the largest recipient of remittances in Latin America and the Caribbean, receiving 41.2% of all transfers to the region. The majority of these funds come from the United States (96%) and Canada (1.8%), where most Mexican emigrants live. Despite a decrease in Mexican migrants in the United States, 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 a total of 156 billion dollars during 2023, with significant growth rates observed in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).