By KELIN DILLON
Mexicans working abroad in the United States who send money back home to their families in Mexico, better known as remittances, increased the amounts they sent by 39.1 percent in April, the largest surge in remittances the country has seen in 18 years.
Remittances reached $4.047 billion in April, more than $1.5 billion dollars more than recorded in the same month the previous year.
The period during 2021’s first four months reached $14.6 billion of remittances in total, a 19.1 percent increase from the $12.3 billion sent to Mexico during the first four months of 2020.
Analysts from Banco Base said the upward trend in remittances is likely to continue in the near future based on the rebound of the United States labor market.
Likewise, stimulus checks sent out by the U.S. government bolstered the pockets of Mexicans working legally in the United States, providing them with extra cash to send back to their families in Mexico.
Employment has also grown more favorable for migrants in the United States, as the shortage of labor there has forced the hands of immigration authorities and employees to be more lax in hiring migrant workers.
“Remittances could grow around 10 percent this year, with a total close to $45 billion. However, risks remain skewed to the upside. In turn, this will continue to support family consumption and is one of the factors that will drive growth in our country for the rest of the year,” said analysts from Banorte.
Further analysts noted how the influx of remittances encourages increased spending in Mexico, assisting with the country’s own economic recovery from the effects of covid-19.