Despite Everything, Remittances to Mexico on the Rise

US Incorporated – by Allan Wall

The flow of remittances sent from Mexicans in the United States back to relatives in Mexico has long been an important factor in immigration (both legal and illegal) to the U.S.

This is money that contributes to the economy of Mexico. It’s disposable income spent in Mexico by relatives of immigrants.

Mexican politicians like it because it’s money flowing into the country, sent to Mexicans living in Mexico.

This is one of the reason that the politicians of Mexico (and other countries) defend illegal aliens in the U.S. and why they tacitly approve of illegal immigration.

Isn’t it embarrassing for these countries to know that so many of their citizens go to the U.S. to make more money than they did back home?

You might think that, and maybe some are embarrassed, in their hearts, but as far as public policy, most Latin American officials support it. After all, emigration gets people out of their country who continue to support the folks back home.

In the long run, it’s questionable whether remittances do much for permanent economic development. It does provide money spent on groceries or building houses, but not so much to invest in long-term economic development.

And now, despite all the dislocation caused by the response to COVID-19, remittances from Mexicans in the U.S. back to Mexico are increasing. Therefore, we can expect to see continued support for Mexican emigration to the U.S.

A November 1st report issued by Banco de México, the Mexican central bank, stated, “In September of 2021, remittance income arriving from abroad registered a level of 4.403 billion dollars, which means an annual increase of 23.3%.” [Banco de México Analytic Report, November 1, 2021]

Interestingly, remittances sent by residents of Mexico to other countries also increased 29.1%, though we are talking about a much lower figure of 107 million dollars.

According to the research division of BBVA (Banco Bilbao Vizcaya Argentaria, a Spanish multinational bank), remittances to Mexico “accumulated an upward streak of 17 consecutive months, which began last May 2020.”

More data from BBVA Research:

Size of individual remittance payments: “Consistently the average remittance has been growing: in September 2019 it was 328 dollars, during that same month of 2020 it reached 347 dollars, and in September of this year it was 381 dollars (+ 9.8% at rate annual).”

Low Mexican Unemployment in the U.S.: “Favorable working conditions in the U.S. drive remittances to Mexico: the unemployment rate for the Mexican migrant population was 4.1% in September 2021. Since last May, the unemployment level of the Mexican immigrant population has been lower than the general average in the United States and lower than pre-pandemic levels.”

Destinations in Mexico: “Seven entities concentrated half of the remittances: Jalisco (10.2% of the national total), Michoacán (9.7%), Guanajuato (8.3%), State of Mexico (6.1%), Mexico City (5.7%), Guerrero (5.0 %) and Oaxaca (4.6%).”

The bottom line: Despite everything, remittances to Mexico are increasing.

So we should not be surprised when the Mexican government, through its vast consular network in the United States, defends illegal aliens.

Besides, that policy fits right in with that of the Biden administration.

US Incorporated

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