MEXICO: Yearly Mexican remittances drop for 1st time on record, down 3.6 percent

By JULIE WATSON |Associated Press Writer

2:59 PM CST, January 27, 2009

MEXICO CITY (AP) — The money sent home by Mexican migrants fell in 2008 for the first time on record, Mexico's central bank said Tuesday — part of a global trend that could worsen as emigrants from developing countries lose jobs in the global financial crisis.

Remittances, Mexico's second-largest source of foreign income after oil, plunged 3.6 percent to $25 billion in 2008 compared to $26 billion for the previous year, the central bank said.

The percentage drop is nearly twice what the government had expected for the year, and central bank official Jesus Cervantes said the decline will likely continue this year. Read more