According to the Inter-American Development Bank, Mexico is projected to receive a record-breaking $64.247 billion in remittances by the end of 2023, which represents an increase of 9.8% from the previous year. Despite this growth, the value of these remittances in Mexican currency will decrease by 3.4% due to currency appreciation against the dollar.
Despite this drop in value, 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 decline in the income levels of Mexican families who receive remittances compared to those who do not.
Mexico remains the leading recipient of remittances in Latin America and the Caribbean, with over 41% of all transfers going to it. The majority of these funds come from the United States (96%) and Canada (1.8%), where most Mexican emigrants reside.
The Inter-American Development Bank also noted a decline in Mexican migrants in the US but stated that migratory flows do not have an immediate impact on remittances as migrants need time to settle and find work before they can start sending money.
Overall, remittances received by Latin American and Caribbean countries 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%).