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By KELIN DILLON

According to the Bank of Mexico (Banxico), July saw a 1 percent year-over-year drop in remittances from the United States to Mexico that amounted to 5.614 billion dollars. 

This marks the third year in which remittance income has declined year over year amid growing concerns about Mexico’s economic viability. 

Likewise, Mexico also experienced a harsh 9.6 percent decrease in remittances from June to July.

However, analysts said this was likely caused by the weakening labor market in the United States rather than Mexico’s internal instability.

This trend was also supported by reports of contraction in factory payrolls and decreased employment indicators for service providers in the U.S.

Despite July’s decline, the total value of remittance income in the first seven months of 2024 totaled 36.94 billion dollars, representing a 2.9 percent annual increase from the same period in 2023. 

Additionally, BBVA Mexico’s economic studies department projected that remittances for the year will reach 66.5 billion dollars, constituting 3.7 percent of the national GDP and supporting more than 1.7 million households and 6.1 million people.