In September, Mexico received $5,359 million in remittances, representing a decrease of 4.6% compared to the same month last year. This was the first recorded drop for a September month since 2012, according to the Bank of Mexico (Banxico) on November 1. During 2024, there have been four consecutive months in which remittances have decreased compared to the previous year. In March, the reduction was 3.4%, in May and July 1%, and in September the decline reached its peak for the year.
Although the total amount of remittances remained above $5 billion, the average remittance experienced a decrease of 3.8%, dropping from $404 in September 2023 to $388 in September 2024. There was also a 0.9% decrease in the number of remittance transactions, totaling 13.8 million. Month-over-month, remittances decreased by 11.9% in September compared to August.
The silver lining of the drop in remittances sent to Mexico is that when converted to pesos and adjusted for inflation in the country, there is an increase in the purchasing power of those who receive them. According to Gabriela Siller, director of economic-financial analysis at Banco Base, purchasing power, that is, the amount of products that can be acquired with remittance money, increased by 3.4% in September.
Despite the decrease in September, in the first months of 2024, $48,386 million in remittances were received, an amount higher than the $47,091 million reported in the same period of 2023, representing an annual advance of 2.8%. However, despite this growth, the dynamism in remittance flow is the lowest since 2013. The accumulated flow of remittance income in the last 12 months stood at $64,614 million, below the $64,872 million reported between September 2023 and August 2024.
