The Inter-American Development Bank predicts that Mexico will receive a record high of 64.2 billion dollars 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%, with inflation taking its toll even more. Despite this decrease, these remittances will still make up 3.9% of Mexico’s GDP.
This growth rate is 41% lower than the estimated growth rate of Mexico’s GDP per capita, indicating a relative deterioration in the income of Mexican families that received remittances compared to those that did not. Despite this decline in value, Mexico remains the largest recipient of remittances in Latin America and the Caribbean, receiving 41.2% of all transfers to the region. Most of these funds come from the United States (96%) and Canada (1.8%), where most Mexican emigrants reside.
The Inter-American Development Bank also noted a decrease 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 expected to reach $156 billion by 2023, with significant growth in Central American countries (13.2%), Mexico (9.8%), and South America (7.9%).