Sunday, 21 November 2010

MEXICO: How important are remittances to Mexico’s economy?

There are millions of Mexican workers in the USA who send a sizable portion of their wages back to their families in Mexico. On a per person basis, Mexico receives more worker remittances than any other major country in the world.

An estimated 20% of Mexican residents regularly receive some financial support from workers abroad. Such remittances are the mainstay of the economies of many Mexican communities, such as many rural areas in Durango, Zacatecas, Guanajuato, Jalisco and Michoacán. Studies suggest that the funds sent as remittances are mostly spent on housing, food, clothing and durable consumer goods. A growing portion is being invested in education and small businesses. The corollary is that only a small percentage goes towards savings. Read more

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