Remittances to Mexico Are Rebounding

Ricardo Lopez, Los Angeles Times, January 11, 2012

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Ending a three-year slump, remittances to Mexico are finally on the upswing, thanks to an improving U.S. job market. Analysts expect that money sent home last year by Mexicans living abroad, most of them residing in the United States, will top $23 billion when Mexico’s central bank releases annual figures this month. Although still below the peak of $26 billion in 2007, that would be a solid 8% increase over 2010.

Money transfer giant Western Union Co., whose revenue sagged during the recession, saw its remittance business strengthen in 2011. The Colorado company reported a 5% increase in revenue from its Mexico business in the third quarter compared with the same period in 2010. Its stock price is up more than 13% over the last three months.

The figures underscore falling unemployment rates in California and nationwide, where sectors such as construction, manufacturing, restaurants and hotels that employ large numbers of Latino immigrants are creating jobs.

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The uptick is also good news for Mexico. Remittances are the nation’s second-largest source of foreign exchange, behind petroleum sales. And they’re a lifeline for millions of low-income Mexicans who use the funds for basics such as food, education and housing.

Remittances are also crucial for infrastructure projects in hardscrabble rural areas of Mexico. Most state governments there have a “Three for One” program in which emigres’ contributions are matched by local, state and federal governments to pay for schools, clinics and other public works projects. When remittances plunged, many projects were suspended or delayed.

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  • http://countenance.wordpress.com/ Question Diversity

    The general tone of this article leads one to think that the writer thinks that this is good news, that remittances to Mexico are increasing.  Then I looked at the byline — “Ricardo Lopez.”  ‘Splains all.

  • http://jihadwatch.org/ Mahound

    Mexico doesn’t just have oil, it is succeeding in the illegal drug vertical: manufacture, import/export, re-export, transportation and retail.

  • Anonymous

    Mexicans sent $23 billion home last year? “Billion” with a “b”? Wow, the Mexicans in the US must be overflowing with cash then. I guess they would be the last people to get government assistance of any kind. After all, those programs are for people who can’t afford basic services and needs – not people who can still send back $23 billion after presumably taking care of themselves first. No, sir – no food stamps, free school lunches, section 8 housing, free prenatal and neonatal care for babies born in free clinics or a single dollar from a long list of giveaways for these people! 

    Wait, what?

  • John Maddox

    You are right Mexico is a parasite. It always has been. That 23 billion dollars could have gone back to the US economy. It is our own business establishment that is aiding and abetting this invasion. Western Union pockets huge profits from these transactions and they should be heavily taxed to discourage this practice.

    Drug cartels have operated in Mexico for decades. The outlawed (by the Catholic church) patron saint of the underworld, Santisima de Muerte, has grown in popularity over the years and has a cult following in this country.For them,there is power in blood and the misery and suffering of those slowly tortured until they are  ‘mercifully’ put to death. One can only guess how many Americans and other ‘innocents’ lie buried in Mexican soil. The Mexican Mestizos immigrating to this country have deep ties to the pagan spiritualism of their Aztec ancestors and have woven pagan mysticism into the fabric of Catholic religious practices ,i.e, the Rosary and the veneration of the Virgin Mary, the Mother of God. One line from the rosary: ‘ Pray for us sinners now and at the hour of our death’ explains a lot. No matter what you have done in this life the intersession of Mary will see you safely to heaven.  My point, these are not a quaint and innocent people as many would have us believe.

    The idea that they mean us no harm and come here to be good citizens is one of the greatest myths of American ‘ civil religion’.

  • John Maddox

    That still doesn’t make up for the fact that when Mexicans come here they still want to be Mexicans. They make no secret of the fact that they intend to supplant us both politically and socially. Blacks have been and always will be a problem. Our Government panders to both groups. What we end up with are two diverse groups supporting the same lame leftist causes that are bringing this country to its knees and destroying our culture in the process. If they are so enterprising let them be enterprising in their own country. If they come here because they are oppressed in their own country then they should do what we Americans have done in the past and change their Government through the political process if possible and a revolution if necessary. Don’t come to my home and tell me I no longer have a place in it because you want to live there.

  • Anonymous

    Why doesn’t the government: (a) track those who send money out of the country via Western Union or any other source (identifying information should be easy to come by), and determine whether the sender is here legally or not; and (b) tax these monies?