According to the Inter-American Development Bank, Mexico is expected to receive a record-breaking $64.247 billion in remittances by the end of 2023, representing a 9.8% increase from the previous year. However, due to the appreciation of the peso against the dollar, its value in Mexican currency will drop by 3.4%. Despite this decrease, these remittances will still account for 3.9% of Mexico’s GDP.
However, this growth rate is 41% lower than the estimated growth rate of Mexico’s GDP per capita, indicating that Mexican families who receive remittances are experiencing a relative decline in income compared to those who do not. Mexico remains the largest recipient of remittances in Latin America and the Caribbean, receiving 41.2% of all transfers to the region. The majority of these funds come from the United States (96%) and Canada (1.8%), where most Mexican emigrants live.
The Inter-American Development Bank also noted a decline in Mexican migrants in the United States but stated that migratory flows do not have an immediate effect on remittances as migrants need time to settle and find work before they can start sending money. Overall, remittances received by countries in Latin America and the Caribbean are projected to reach $156 billion during 2023, with significant growth in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).