The Inter-American Development Bank has projected that remittances to Mexico will reach a record-breaking $64,247 million by the end of 2023, up 9.8% from the previous year. However, due to the appreciation of the peso against the dollar, their value in Mexican currency will decrease by 3.4%. Even more, when inflation is taken into account, this decline could be even greater.
Despite this decrease in value, these remittances will still represent 3.9% of Mexico’s GDP. While this growth rate is lower than the estimated growth rate of Mexico’s GDP per capita (41%), it indicates a relative deterioration in the income of Mexican families that received remittances compared to those that did not.
Mexico remains the largest recipient of remittances in Latin America and the Caribbean, with 41.2% of all transfers to the region coming from the United States (96%) and just 1.8% from Canada, where most Mexican emigrants reside.
The Inter-American Development Bank also noted a decline in Mexican migrants living in the United States but stated that migratory flows do not have an immediate effect on remittances since migrants need time to settle and find work before they can begin sending money back home.
Overall, remittances received by countries across Latin America and the Caribbean are expected to reach $156 billion during 2023, with significant growth in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).