Remittances sent to Mexico from the United States are crucial in increasing purchasing power, covering essential expenses, and creating jobs.
On the occasion of International Day of Family Remittances, observed every June 16, Heraldo USA assesses the importance of these transfers to Mexico.
According to the Remittance Analysis 2018-2024 by the Undersecretary of Human Rights, Migration, and Population of the Ministry of the Interior, during President López Obrador's administration, remittances have shown sustained growth, reaching their highest level in 2023, with $63.313 billion. From January to April 2024, $18.5 billion was received, a 2.8% increase compared to the same period in 2023.
The amounts sent by compatriots in other countries have also grown steadily, starting at an average of $318 in 2018 and reaching $392 in 2023. From January to April 2024, the average amount sent per transaction was $389.
According to BBVA Research, the United States is the leading source country for remittances to Mexico, accounting for 96%. Other significant countries include Canada (1.5%), Ecuador (0.3%), Guatemala (0.1%), and Colombia (0.1%).
The primary uses of remittances vary between men and women. Women mostly use remittances for food and clothing, followed by health services. In addition to spending on food and clothing, men also invest in home improvement (EMIF 2022-2023).
The federal entities receiving the most remittances in 2023 were Guanajuato ($5,414 billion), Michoacán ($5,409 billion), Jalisco ($5,355 billion), Chiapas ($4,367 billion), the State of Mexico ($4,354 billion), and Mexico City ($3,868 billion). In the first quarter of 2024, Michoacán, Jalisco, and Guanajuato received 26% of the national total (amounting to $3.601 billion).
At the municipal level, in 2023, San Cristóbal de las Casas, Chiapas ($887 million), Tijuana, Baja California ($787 million), and Guadalajara, Jalisco ($650 million) recorded the highest remittance incomes.
This study also reveals that from 2018 to 2023, electronic transfers were the most used method for sending remittances, averaging 131,333 transactions and showing sustained growth. Cash and in-kind operations averaged 1,212 transactions, with a 20% decrease in use, while money orders averaged 191 transactions, remaining stable.
This year's International Day of Family Remittances campaign focuses on digital remittances for financial inclusion and cost reduction. Digital transactions are estimated to cost less than 4.6% of the amount sent.
In Mexico, remittance reception has played a significant role in accessing banking services. Electronic transfers accounted for 99% of total remittance income in the first quarter of 2024, totaling $19.306 billion.