According to the Inter-American Development Bank, remittances to Mexico are projected to reach a record high of $64.247 billion by the end of 2023, representing a 9.8% increase from the previous year. Despite this growth, the value of these remittances in Mexican currency will decrease by 3.4% due to the appreciation of the peso against the dollar and inflation.
These remittances will still contribute 3.9% to Mexico’s GDP, but 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 not receiving them.
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 emigrants live.
The Inter-American Development Bank also noted a decline 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 by 2023, with significant growth in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).