Remittances sent to Mexico from abroad fell in 2025 for the first time in 11 years, driven largely by a decline in migration to the United States, the primary source of those funds, according to official data released by Mexico‘s central bank.
Mexicans living overseas sent $61.79 billion in remittances in 2025, down 4.6% from $64.7 billion in 2024, figures from the Bank of Mexico (Banxico) showed. More than 95% of those transfers originated in the United States, making the total the lowest level in more than a decade.
“After 11 consecutive years of expansion in remittances, during which these resources nearly tripled, 2025 confirms the end of that growth streak,” said Juan José Li, an analyst at BBVA, in a note to clients reported by Univision.
Li said the decline coincides with reduced Mexican migration to the United States between 2021 and 2023, even as migration from countries such as Venezuela, Colombia, and Peru increased over the same period. “Without a renewal in the flow of new migrants, it is difficult for remittances to sustain growth,” he said, noting that transfers rose only marginally in 2024 before falling in 2025.
Gabriela Siller, head of economic analysis at Banco Base, attributed the drop to a weakening U.S. labor market and stricter immigration enforcement. She said those policies have discouraged migrants from going to work out of fear of detention or deportation.
Additional pressure on remittances emerged at the start of 2026, when the Trump administration implemented a 1% tax on remittances sent in cash, money orders, or cashier’s checks. Analysts expect the measure to further weigh on inflows this year, particularly for lower-income households that rely on non-electronic transfers.
Banxico data showed that 99.1% of remittances in 2025 were sent electronically, totaling $61.2 billion. Cash transfers and money orders accounted for less than 1% of the total. Despite the annual decline, remittances rose 1.9% in December to $5.32 billion, snapping an eight-month streak of monthly decreases.
Remittances represented about 3.5% of Mexico’s gross domestic product in 2024, a smaller share than in countries such as Honduras, El Salvador, and Nicaragua, where they exceed 20% of GDP.
Looking ahead, analysts warned that slower U.S. economic growth, tighter immigration enforcement, and a stronger peso could pose further risks to remittance flows in 2026.
Originally published on Latin Times
