Remittance Slowdown in 2024: A Blow to Family Income

Remittances to Mexico have shown signs of weakness in September. That month, reported remittance income was $5.359 billion, representing a 12% decrease compared to August. According to the Bank of Mexico (Banxico), this decline is attributed to a reduction in both the total number of transactions and the average amount of each transfer.

The total remittances received by the country in September also represent a 4.6% drop compared to the same month last year. In August, there was a recorded year-over-year growth of 9.3%. The number of transfers, which primarily come from the United States, decreased by 0.9% to nearly 14 million, while the average amount per transfer also fell by 3.8%, dropping to $388. As the elections in the U.S. approach, set for next Tuesday, analysts anticipate changes in immigration policies, as Donald Trump's campaign seeks to tighten border crossings and increase deportations. Conversely, the future administration of Kamala Harris may attempt to pass bipartisan reform to modify the asylum process and limit the temporary stay permits for immigrants. These policy changes could have a significant impact on both migrants and the economies of Central American countries that rely heavily on remittances sent from the United States.

The decline in remittances could have effects on the family economy of many Mexicans. In times of political uncertainty, it is vital for families to diversify their incomes and seek savings and investment alternatives to mitigate the impact of these fluctuations in cash flow.