Mexico Sees Steepest Drop in Remittances in Over a Decade Amid U.S. Immigration Crackdown and Tax Threats
BBVA Research, which warned that the remittance tax, currently under discussion in the U.S., would increase the cost of sending a $350 remittance from about $5 to $17.25, an increase of nearly 250%
Pedro Camacho Pedro Camacho / Published Jun 04 2025, 6:00 AM EDT
Mexico recorded a 12.1% year-on-year drop in remittances in April 2025, marking the steepest decline since in almost 13 years, according to new data released by Mexico's central bank. Total remittances fell to $4.76 billion, driven by both a decrease in the number of transactions and lower average amounts sent.
The drop coincides with heightened immigration enforcement in the United States and growing concern over a proposed 3.5% federal tax on money transfers sent abroad.
"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 as quoted by Reuters.
Through the first four months of 2025, total remittances to Mexico reached $19.02 billion, down 2.5% from the same period in 2024. This marks a reversal after 11 consecutive years of growth, as previously reported last week by BBVA Research.
https://www.latintimes.com/mexico-sees-steepest-drop-remittances-over-decade-amid-us-immigration-crackdown-tax-threats-584254
