Remittances sent to Mexico fell 5.5% to 34.889 billion dollars in the first seven months of 2025 compared to the same period last year, amid the aggressive immigration policy of the United States, the main source of remittances to Mexico, informed the Bank of Mexico (Banxico) on Monday.
In July alone, Mexico received US$5.33 billion in remittances, a monthly decline of 4.7% and a year-on-year drop of 1.3%.
Drop in Remittances to Mexico by 5.5%.
With this, Mexico reduced by 2.03 billion dollars the amount received in the first seven months of 2024, when it totaled 36.919 billion dollars, a historic figure for a similar period.
In Mexico, where remittances represent almost 4% of the economy, the average remittance from Mexican nationals to the country fell 0.6% between January and July, from 394 dollars to 392 dollars compared to the same period last year.
The number of transactions during the same period decreased by 4.9% year-on-year to 89 million, 99.1% of which were wire transfers.
This continued a downward trend following the 16.2% drop in June, its largest decline in thirteen years, and the 4.4% year-on-year decline in May.
Mexico has seen 11 years of annual increases in remittances after ending 2024 with a record $64.745 billion dollars.
But a streak of 46 months of consecutive growth ended last March, following the first days of U.S. President Donald Trump’s second term in office.
Remittances began to grow at the beginning of the covid-19 pandemic in March 2020, but now remittances to Mexico are down 5.5%.
Remittances are the main source of foreign income for the country, which received a record US$64,745 million in 2024, an increase of 2.3% over 2023.
In 2023, it also achieved a historic figure of US$63.313 billion and the eleventh consecutive annual increase.
Last June, the U.S. Government announced a 1% tax on remittances sent in cash, money orders, cashier’s checks or other similar instruments.
In response, Mexican President Claudia Sheinbaum implemented a special program to reimburse Mexican nationals for the amount they will pay for the dollars sent to Mexico.
The president has also criticized the measure adopted by the Trump Administration as a violation of the 1994 bilateral treaty against double taxation.
Mexicans account for nearly half of the 11 million undocumented immigrants in the United States and their remittances represent nearly 4% of the gross domestic product (GDP) of the country, the second largest recipient of remittances in the world, behind only India.
With information from Agencia EFE
