From $250M to $5B: Mexico's Remittances Reach All-Time High

For the first time in history, remittances to Mexico surpassed $5B USD in May 2022, according to data from Banxico. The average remittance value is $401 USD, and 5%+ of all households in the country receive one. President AMLO has highlighted this "accomplishment" several times. But is it really something to be proud of?

Since 2010, remittances to Mexico have been on an upward trend; this period corresponds with President Calderon's declaration of the Mexican Drug War and a rise in countrywide violence that led many residents to flee due to fear and lack of economic opportunities.

However, the trend has remained even after two more presidents have come into power, both from different political parties. As you can see on our chart, the amount of money sent by migrants rose significantly in the last two years, most likely due to the pandemic recession, subsequent inflation, and ongoing migration.

Today, remittances from Mexicans working abroad represent over 3.8% of the country's GDP and surpass almost all other sources of Mexico's foreign income—including tourism, oil exports, and most manufacturing exports. Mexico should perhaps focus less on celebrating remittances and instead develop opportunities that will decrease the country's growing reliance on migrants fleeing abroad.