Mexican Workers Abroad Keep Sending Record Cash Back Home -Breaking
(Bloomberg) — Mexico’s remittances reached another record in October, powered by the U.S. economic recovery and a weaker peso that encourages workers abroad to send money back home to support their families.
Latin America’s second-largest economy posted $4.82 billion in money sent by Mexicans abroad in October, the biggest inflow on record and a 34% gain compared to a year ago, the central bank said on its website Wednesday. According to a Bloomberg survey of economists, the median forecast was $4.58 trillion.
According to the central banks, there were more transactions than in September at 11.6million.
Alberto Ramos is an economist. Goldman Sachs Group Inc (NYSE :)., noted in a note, that record amounts were achieved due to generous U.S. wage rates and a decline in Mexican economic activity.
“Solid workers’ remittance flows have been adding support to the current account and to private consumption, particularly for low-income families, who have a high propensity to consume and are the overwhelming recipients of such transfers,” he wrote. “The moderating activity and income growth profile in the U.S. should lead to a moderation in remittance flows to Mexico in coming quarters.”
Mexico’s President Andres Manuel Lopez Obrador has for months lauded the contribution of workers abroad, stating earlier this month that Mexico was on track to reach a total of $50 billion in remittances by the year’s end. In the first 10 months of this year, remittances from Mexico have surpassed $42billion.
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