In line with a current examine by BBVA México, remittances to México are projected to extend by 8.9% in 2023, reaching a historic excessive of roughly US$63.7 billion.

This outlook surpasses earlier forecasts that predicted flows of round US$62.6 billion for the 12 months.

Within the first half of 2023, remittances to the nation reached US$30.238 billion, marking a 9.9% enhance in comparison with the identical interval in 2022.

This steady rise has been noticed month-to-month since 2019.

By the tip of 2022, the influx of remittances had amounted to US$58.51 billion, indicating a 13.4% year-on-year development from 2021.

Moreover, BBVA México, along with the Nationwide Inhabitants Council (Conapo), predicts that by 2024, remittances may climb to US$67.9 billion, which is 6.6% larger than the estimates for the tip of 2023.

BBVA México’s chief economist, Carlos Serrano, highlighted that the expected remittance development charges are marginally decrease than in previous years.

This decline is because of an anticipated gradual deceleration within the U.S. job market, which represents the origin of 95% of each greenback despatched to México.

Serrano emphasised the growing reliance on remittances in particular Mexican areas, the place they’ve change into a major supply of overseas trade, surpassing direct overseas funding, crude oil exports, and worldwide tourism.

Michoacán, Chiapas, Oaxaca, and Zacatecas have the best dependency on remittances, in distinction to Campeche, Tabasco, and Nuevo León.

He additionally clarified that many remittances originate from respectable sources, responding to worldwide media reviews suggesting potential cash laundering by means of these channels.

He additional highlighted that remittances now represent 4.1% of México’s GDP.

Globally, remittances witnessed a 68% development between 2010 and 2022.

Nevertheless, in México’s case, there was a whopping 175% surge on this timeframe, exhibiting a constant upward pattern since 2016, with expectations of continued development.