In 2023, Mexico is projected to receive a record-breaking $64.247 billion in remittances, according to the Inter-American Development Bank. This represents an increase of 9.8 percent over the previous year, but due to the appreciation of the peso against the dollar, its value in Mexican currency will fall by 3.4 percent, and even more after accounting for inflation. Despite this decrease in value, these remittances will still account for 3.9 percent of Mexico’s GDP.
However, this growth rate is 41 percent lower than the estimated growth rate of Mexico’s GDP per capita, indicating a relative deterioration in the incomes of Mexican families who received remittances compared to those who did not. It’s worth noting that Mexico remains the main recipient of remittances in Latin America and the Caribbean, receiving 41.2 percent of all transfers in the region. Most of these funds come from the United States (96 percent), and 1.8 percent from Canada, where most Mexican emigrants live.
The Inter-American Development Bank also noted a decrease in the number of Mexican migrants in the United States but said that migration flows do not have an immediate effect on remittances as migrants need time to settle and find work before they start sending money. Overall, remittances received by Latin American and Caribbean countries are expected to reach $156 billion in 2023 with significant growth expected Central American countries (13.2%), Mexico (9.8%), South America (7.9%).