Friday, March 7, 2008

Remittances Decelerate into Mexico

For those of you doing business in Mexico or the border region, please take note of yet another anecdotal warning sign of the trouble to come down Mexico way:

Remittances to Mexico see biggest drop in 13 years
By Afredo Corchado for The Dallas Morning News

MEXICO CITY – Remittances to Mexico were down nearly 6 percent in January, the biggest drop in 13 years, which experts attributed to a downturn in the U.S. economy and anti-immigrant policies.

In its report this week, Mexico's central bank, known as the Bank of Mexico, said remittances fell to $1.65 billion in January from $1.76 billion a year earlier, signaling the biggest decline since the bank began recording remittances in 1995. Remittances are the second-biggest source of foreign currency inflows behind oil exports for Mexico, though they comprise just about 3 percent of the country's gross domestic

Let's not forget that Mexico is in the depletion phase of her oil production and that, barring some miracle, that income stream will be threatened in the coming years as well.

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