Remittances are funds sent home by people from Country A earning wages in Country B. Many nations have grown to depend on remittances.
Mexicans working in the United States send remittances back to their families, not to the Mexican government. Family members spend the money in Mexico, so it contributes to the local economy.
Visual Capitalist has released a list showing the percentage of each countries’ gross domestic product (GDP) comprised of remittances in 2024.
Mexico received over $60 billion USD in remittances. Most of that money was sent by Mexicans working in the U.S.
That’s a lot of money, but since Mexico has a big economy, the remittance total was a small percentage of its overall GDP.
In 2024, 3.64% of Mexico’s GDP came from remittances.
If all the remittances dried up, it would decrease the size of the Mexican economy, but the economy wouldn’t collapse.
You can read the rest of this article at Mexico News Report.
