Mexico On Track To Lose Close To $4 Billion In Remittances In 2025, Data Shows

Mexico is on track to lose close to $4 million in remittances this year if the current trend holds, according to Border Report.

The outlet noted that there has been a 5.8 percent drop since the beginning of the year. Earlier this month, Banxico, the Mexican central bank, added that the year-on-year decrease in June clocked in at 16%.

Overall, almost $63 billion were sent to the country in remittances over the past 12 months, less than 2023 and 2024. This marks a reversal after 11 consecutive years of growth, as previously reported by BBVA Research.

The report added that it is now estimated that Mexico will receive $61 billion in remittances, noting that a factor contributing to the drop is the fact that "less Mexican migrants have entered the U.S. job market" since November 2023.

An April report by the central bank was already warning about the trend. "The deterioration of the labor market in the U.S. and U.S. migrants' fear of going out to work and sending their remittances, for fear of being deported," explained Gabriela Siller, Director of Economic Analysis at Banco Base when interviewed by Reuters.

CEMLA, a Mexico City financial policy think-tank, added that "employment of Mexican immigrant workers contracted in the U.S. in the first five months of 2025." Migrants not showing up "to their jobs for fear of being deported" could be a factor, the organization noted.

Remittances — money sent by migrants to support family or businesses in their home countries — are a vital economic lifeline for many nations worldwide.

In 2024, Mexico received a record $64.7 billion in remittances, accounting for nearly 4% of its gross domestic product, according to the country's central bank.

In May, Sheinbaum highlighted that remittances play an even larger role in several Central American economies, representing more than 25% of GDP in Nicaragua and Honduras, 23.5% in El Salvador, and 19.5% in Guatemala.

"Keep in mind, this reduction is not only important for Mexico. In some Central American countries, remittances make up 20% or more of GDP. In Mexico, it's about 3%. This matters to many countries — even India," Sheinbaum said in May.