Remittances, funds sent from Mexicans in the U.S. back to Mexico, are going down.
In a previous article I reported that remittances in May 2025 were down 4.6% in comparison to May 2024, a year earlier.
Now the figures are out for June.
From Mexico News Daily: “The amount of money Mexico received in remittances fell 16.2% annually in June, the largest year-over-year decline for any month in more than a decade...The Bank of Mexico (Banxico) reported on Friday [August 1st] that income from remittances totaled US $5.201 billion in June, down from $6.207 billion in the same month of 2024. The 16.2% year-over-year decline was the biggest annual drop in remittances to Mexico for any month since September 2012. Considering only the month of June, it was the largest annual decrease on record.”
The June decline from a year earlier was in both numbers of remittance transfers and quantity of money in the payments:
Transfers: “The $5.2 billion sent to Mexico in remittances in June came in 12.7 million individual transfers. The number of transfers declined 14.3% compared to June 2024.”
Payment Quantities: ” “The average individual remittance to Mexico in June was $409, a 2.2% annual decline. While the average remittance declined in annual terms in June, the amount was the highest since August 2024.”
The U.S. immigration crackdown is a partial explanation: “Analysts partially attributed the sharp decline to fear of going out to work among Mexicans in the United States, where the U.S. government is pursuing an aggressive deportation agenda.”
The Mexico News Daily article quotes some analysts: “ ‘Remittances plummeted in June due to low job creation for Mexicans in the United States and the fear of migrants to go out due to the possibility of being deported,’ Gabriela Siller, director of economic analysis at Banco Base, wrote on X…”
“Jesús Cervantes González, director of economic statistics at the Center for Latin American Monetary Studies, said ‘there are indicators that show a weakening of employment for Mexican immigrant workers in the United States.’ ”
“ ‘That could be due both to a genuine decrease in demand for such workers and to their irregular presence at their workplaces out of fear of being deported,’ he said.”
The BBVA bank (Banco Bilbao Vizcaya Argentaria, S.A.), headquartered in Bilbao, Spain, agrees: “BBVA said that ‘the recent actions and immigration policies of the United States government are marginally affecting’ the transfer of remittances to Mexico. The bank said that the decline in remittances to Mexico in the first half of the year is ‘mainly explained by a lower incorporation of new Mexican migrants to the United States labor market.’ ”
A look at the first half of 2025 shows a decline: “In 2024, Mexico received a record-high $64.74 billion in remittances, the 11th consecutive year of growth in such transfers. But in the first six months of 2025, income from remittances fell 5.6% annually to $29.576 billion, according to Banxico.”
“The amount of money Mexico received in remittances also declined in annual terms in May, April and February.”
“Siller, the Banco Base analyst, said that the data for June indicated that ‘remittances could continue to decline for the rest of the year, affecting consumption in Mexico.’ ”
“Analysts from the banks Banorte, BBVA, Goldman Sachs and JPMorgan also believe there is a risk that remittances will continue to decline in the second half of 2025, according to the newspaper El Economista.”