Tuesday, February 01, 2005

Mexicans send money home

One reason why Mexican migration is a better deal for Mexico than for the United States:

Mexican labourers living in the US sent a record $16.6bn (£8.82bn) home last year.

The Bank of Mexico said that remittances grew 24% last year and now represent the country's second-biggest source of income after oil.

Better records and greater prosperity of Mexican expatriates in the US are the main reasons behind the increase.

About 10 million Mexicans live in the US, where there are 16 million citizens of Mexican origin.

Remittances now represent more than 2% of the country's GDP, according to the Bank of Mexico's figures.

Last year, there were 50.9 million transactions, with an average value of $327 per remittance, the bank said.

According to Standard & Poor's, which has recently upgraded Mexico's sovereign debt rating, the rise in remittances helps protect the Mexican economy against a potential fall in the international oil prices.

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