Mexican Workers Abroad Send Record Cash Back Home Amid U.S. Boom
(Bloomberg) -- Mexican workers abroad sent more money home than ever as growth and tight labor conditions in the U.S. boost spending power.
Remittances rose to $4.51 billion in May, blowing past the previous record and outstripping the average $4.25 billion estimated by nine economists surveyed by Bloomberg. The previous record was set in March, with $4.16 billion sent back to Mexico.
Strong remittances couldn’t come at a better time, as the nation’s growth recovery is still struggling after a lack of fiscal stimulus by the government. A robust pick-up in the world’s largest economy -- also Mexico’s largest trading partner -- may help juice the nation’s nascent rebound.
The figures “clearly reflect that Mexicans who are in the U.S. are in a good job position,” said Benito Berber, the chief Latin America economist at Natixis SA in New York. “It also reflects the need to send money to Mexico and the perception that the dollar is “expensive” and that it pays well to send money to Mexico.”
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