Mexico's Economy
Remittances from the United States
How millions of Mexicans working in the US send home over 60 billion dollars a year, their role in poorer states, and the effects of US immigration policy.
Mexico is one of the world’s largest remittance recipients.
Size
Remittances to Mexico exceeded 60 billion dollars in 2023-24, second only to India globally.
Sources
- Millions of Mexicans and Mexican-Americans work in the US.
- Many work in construction, agriculture, services and manufacturing.
Impact
- Remittances support household spending, housing and education.
- Poorer states like Michoacán, Guanajuato, Oaxaca and Guerrero depend heavily on them.
- They exceed oil export earnings in some years.
Policy risks
- US immigration enforcement and deportations.
- A 2025 US proposal to tax remittances; a small tax of 1 percent on certain cash transfers was included in US legislation that year.
Exchange rates
A strong peso reduces the value of dollar remittances in pesos.
Comparison
Like India’s Gulf-dependent states such as Kerala, Mexico’s poorer regions rely on migrant money.
The monthly transfer
A construction worker in Texas sends 400 dollars a month to his family in Oaxaca, covering his children's school costs.
Thinking remittances are small
They exceed 60 billion dollars a year for Mexico.
Key takeaways
- Mexico's remittances exceeded 60 billion dollars.
- They support poorer states heavily.
- US immigration and tax policy create risks.
- Mexico is second only to India in remittances.
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