Remittances to Mexico drop for the first time in 11 years

Remittances sent home by Mexicans living abroad declined for the first time in 11 years in 2025, official data showed Tuesday, a phenomenon analysts said was likely due to a drop in migration to the United States. Money sent home to their families from Mexicans living in the United States has traditionally made up about 95 percent of remittances -- which totaled some $61.8 billion last year. The figure represented a 4.6 percent drop from 2024, said Mexico's central bank.

"After 11 consecutive years of growth in remittances, during which these inflows nearly tripled, 2025 confirms the end of this growth streak," Juan Jose Li, an analyst at the BBVA group, said in a report. He said the trend coincided with a drop in Mexican migration to the United States. Other risks to remittance flows in 2026 included a possible economic slowdown in the United States, which has been cracking down on undocumented migrant entries, as well as an appreciation of the Mexican currency against the dollar, said the expert.

In Mexico, Latin America's second-largest economy after Brazil, remittances in 2024 were equal to 3.5 percent of GDP. In 2025, the country's economy had its worst performance since the Covid-19 pandemic, growing 0.7 percent year-on-year as trade tensions with the United States took a toll. The Mexican government announced Tuesday it would increase public investment over the next five years, notably on infrastructure spending. It announced a spending plan totaling 5.6 trillion pesos (some $325 billion) for roads, railways and airports as well as energy, health and education, as it seeks to boost production and consumption.