Mexico remittances rebound in 2014

Remittances to Mexico increased in 2014, explained by the rebound of the US economy. Yet the amount still does not reach pre–crisis levels seen in 2007.

Full-year remittances totaled US$23.6bn, representing year-on-year increases of 7.8% in US dollars and 12.3% in local currency, Goldman Sachs reported in a release.

Remittances at year–end 2007 were US$26.1bn.

Wire transfers accounted for the bulk of remittances sent, totaling 97%, with money orders and informal channels accounting for the rest.

The average remittance amount sent in 2014 was US$293.51, compared to US$291.93 the previous year.

Given the growth and employment improvements in the US, remittances are anticipated to stabilize moderately in 2015 and will support the lackluster private consumption, Goldman Sachs added.

According to data from the World Bank, Mexico is the fourth largest recipient of remittances globally.