Mexico is projected to receive a record-breaking $64.247 billion in remittances by the end of 2023, according to the Inter-American Development Bank. This represents a 9.8% increase from the previous year, but due to currency fluctuations, its value in Mexican pesos will drop by 3.4%. Even after factoring in inflation, these remittances will still account for 3.9% of Mexico’s GDP.
However, this growth rate is 41% lower than the estimated growth rate of Mexico’s GDP per capita, indicating a relative decline in the income of Mexican families receiving remittances compared to those who did not. Despite this decrease in value, remittances will remain a significant source of income for many Mexican households and businesses.
Mexico remains the largest recipient of remittances in Latin America and the Caribbean, accounting for 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 migrants reside. While there has been 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 begin sending money back home.
Overall, remittances received by countries in Latin America and the Caribbean are expected to reach $156 billion by 2023, with significant growth seen in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).