Finance International News Opinons Politics Southern Border Trade

Mexican Migrants Sent Record $36B In Remittances In 2019

Instability in Mexico and Latin America drove a wave of migrant workers to send a record amount of remittances to their home countries in 2019. Mexico’s Central Bank reported that Mexican migrants working overseas sent home a record-high $36 billion in remittances in 2019, a 7 percent increase from 2018.

According to a study from the Inter-American Dialogue, between 2016 and 2017, remittances to Mexico increased by 12 percent, a sharp rise from previous years.

Beginning in the late 1980s, Mexico transitioned from a closed economy to a market-oriented economy. Mexico further accelerated its market-based economy by entering into the NAFTA agreement in 1994 and exports became a major source of revenue. Still, Mexico is highly dependent on the United States for exports and remittances. Remittances replaced oil exports as Mexico’s largest source of foreign exchange, according to a Congressional Research Service report.


One Day After Cancelling July 4 Fireworks, Buffalo, NY, Celebrates Somali Independence Day
‘Young Washington’ Delivers Revolutionary Hit for Angel Studios Honoring America’s 250th Birthday
Ex-Obama advisor mocked after questioning Chicago’s response to unconscious man: ‘Own a mirror?’
Secret Service missed ‘multiple opportunities’ to prevent Trump assassination attempt: watchdog
Watch: Young Americans Turn National Mall Into Wild Celebration of Patriotism as US Scores Big World Cup Win
Before 1776: Rediscovering America’s first chapter at Jamestown
Watch: Pete Hegseth Skewers ‘Blinded by Ideology’ Protesters Who Interrupted Moment of Silence for Fallen Soldier
Secret Service debuts new badge for all personnel: ‘Represents unity’
Thunderbirds to race cars: Inside Horsepower of America at the Great American State Fair
Video shows moments before Army veteran was fatally shot in Walmart parking lot dispute
WWII pilot missing after secret spy mission finally accounted for more than 80 years later
Trump’s ‘hero’ justice offers roadmap after Supreme Court rejects birthright order
Former KKK Grand Wizard praises Mamdani-endorsed socialist’s stance on interracial marriage
Rep. Anna Paulina Luna Declares War on the Senate Over SAVE America Act
MUST SEE: The Moment Actual Rough Riders Escort Trump’s Motorcade to the Teddy Roosevelt Library


From foreign tourism, Mexico receives about $25 billion while only $22.4 billion in annual petroleum exports.

See also  Road to America 250 starts with Ford: Exhibit at Union Station shows off iconic vehicles

Mexico’s poverty rate remains high despite its openness to the international economic system. The poverty rate stands at 41.9 percent as of 2018 according to the International Monetary Fund. People working in the subsistence farming or informal sector of the economy are among Mexico’s poorest citizens and are especially reliant on remittances from the U.S. to pay for basic essential needs.

Remittance flows could remain high with Mexico’s economy projected to remain sluggish. The International Monetary Fund predicts meager economic growth for Mexico at 1 percent in 2020. Mexico’s 2019 third-quarter growth remained stagnant as well.

The rise in remittances from the United States to Mexico is happening alongside an overall downside trajectory in immigration from Mexican migrants to the U.S.

Across the wider Latin America region, remittances grew by 4.7 percent in 2019, according to a study published by Manuel Orozco, director of the Migration, Remittances, and Development Program at the Inter-American Dialogue.


One Day After Cancelling July 4 Fireworks, Buffalo, NY, Celebrates Somali Independence Day
‘Young Washington’ Delivers Revolutionary Hit for Angel Studios Honoring America’s 250th Birthday
Ex-Obama advisor mocked after questioning Chicago’s response to unconscious man: ‘Own a mirror?’
Secret Service missed ‘multiple opportunities’ to prevent Trump assassination attempt: watchdog
Watch: Young Americans Turn National Mall Into Wild Celebration of Patriotism as US Scores Big World Cup Win
Before 1776: Rediscovering America’s first chapter at Jamestown
Watch: Pete Hegseth Skewers ‘Blinded by Ideology’ Protesters Who Interrupted Moment of Silence for Fallen Soldier
Secret Service debuts new badge for all personnel: ‘Represents unity’
Thunderbirds to race cars: Inside Horsepower of America at the Great American State Fair
Video shows moments before Army veteran was fatally shot in Walmart parking lot dispute
WWII pilot missing after secret spy mission finally accounted for more than 80 years later
Trump’s ‘hero’ justice offers roadmap after Supreme Court rejects birthright order
Former KKK Grand Wizard praises Mamdani-endorsed socialist’s stance on interracial marriage
Rep. Anna Paulina Luna Declares War on the Senate Over SAVE America Act
MUST SEE: The Moment Actual Rough Riders Escort Trump’s Motorcade to the Teddy Roosevelt Library

See also  Illegal immigrant gets eight year prison sentence for $89 million payroll tax fraud scheme

Mass protests and civil unrest across Central and Latin America were a primary factor in the rise of remittances. Although there are many diverse motivations for the movements that spread across Latin America, there are some similarities shared. People in Ecuador, Peru, Chile, Bolivia, and Colombia rose up in protest against political corruption and ineptitude, and the respective governments’ overall lack of responsiveness in dealing with social services.

According to global trends, remittance flows were down slightly in the fourth quarter of 2019 and was 6.8 percent. The global average for remittance transfers has remained below 8 percent since 2014, according to the World Bank.

Story cited here.

Share this article:
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter