For the first time in more than a decade, remittances sent by Mexicans to the country registered a year-over-year decline. According to the Bank of Mexico (Banxico), $24.375 billion was received between January and May 2025, representing a 2.96% decrease compared to the same period in 2024.
This decline breaks a trend of sustained increases for the same period since 2012 and occurs in a context marked by stricter immigration policies from US President Donald Trump, as well as the legislative proposal in the US to implement a reduced tax on remittances.
In May alone, Mexico received $5.36 billion in remittances, a 4.6% decrease compared to May 2024.
The average remittance sent also fell slightly, from $387 to $384, a 0.91% decrease.
In Mexico, remittances represent around 4% of the Gross Domestic Product (GDP), serving as an important pillar for millions of households, especially in rural areas. The country is the second-largest recipient of remittances globally, after India.
By the end of 2024, remittances had reached a record high of $64.745 billion, and the country had accumulated eleven consecutive years of annual increases. However, a 46-month streak of uninterrupted year-on-year growth ended in March of last year.
The decline in remittance flows coincides with a tightening of immigration policy in the United States, the main country of origin for these remittances. Currently, it is estimated that Mexicans make up almost half of the 11 million undocumented migrants residing in the United States.
Source: tabascohoy
