As I predicted, remittances to Mexico drop, 1st time since 1995
Good news.
Money sent home by Mexican migrants declined by 2.2 percent in the first six months of 2008, the first sustained drop in more than a decade, Mexico's Central Bank reported today.
The downturn in U.S. housing construction and stepped-up U.S. immigration raids have made it tougher for migrants to find jobs, and less able to send home money.
Jesus Cervantes, director of economic measurement for the bank, said year-end figures are expected to continue this trend — the first sustained drop since 1995, when Mexico's central bank began keeping a tally. Excellent. That could mean a 5-6% drop for the year. I hope it continues to fall, fast.
Money sent home by Mexican migrants — also known as remittances — is the country's second-largest legal source of foreign income, after oil exports. And for years, it contributed to a growing Mexican economy: Annual remittances nearly tripled from about US$9 billion in 2001 to almost US$24 billion in 2007, amid improved reporting methods and an exodus of migrants from Mexico.
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