Money transfers to Mexico experience a continuous decline for the fourth consecutive month
Mexico has experienced a substantial drop in remittances in the first seven months of 2025, according to data released by Banxico, the country's national bank. The total remittances received by Mexico between January and July amounted to $34.88 billion, a decline of 5.5% compared to the same period in 2024.
The majority of these remittances are sent by Mexicans living and working in the United States. The decline in remittances is likely due to fewer transactions and smaller sums being sent, with the average amount transferred in each transaction in July increasing slightly by 3.6% to $416, compared to the same month in 2024. However, the number of individual remittance transfers decreased by 8% in July.
The total amount of outgoing remittances from Mexico between January and July was $687 million, a significant decrease of 13.7% compared to the same period in 2024.
Analysts attribute the decline in remittances to a variety of factors, including fear of going out to work among U.S.-based Mexicans. This decline in income, which helps many Mexican families make ends meet, is on track to decline in 2025 for the first time in more than a decade.
Income from remittances is a crucial source of income for many families in Mexico. The decline could have significant economic consequences, particularly for those who rely on this income to meet basic needs.
It is worth noting that more than 99% of the total amount in remittances received by Mexico between January and July was transferred electronically.
This is the largest year-over-year decline in remittances since the first seven months of 2009, when an 11.9% annual reduction was recorded. This is also the first time since 2013 that Mexico's income from remittances has declined on an annual basis during four consecutive months.
According to BBVA, 4.3 million of the Mexicans living and working in the United States are "unauthorized" immigrants. The bank responsible for publishing data on the record decline in remittance revenues in the first seven months of 2025 in Mexico is Banxico.
The total number of remittance transactions in Mexico between January and July was just over 89 million, a decline of 4.9% compared to the number of transactions in the first seven months of 2024.
This decline in remittances is a concerning development for many families in Mexico who rely on this income to meet their basic needs. It is a trend that continues to be closely monitored by analysts and policymakers alike.
