Remittances to Mexico continue to fall

The amount of money that Mexicans living and working in the United States send home to their families south of the border is continuing to drop.

Remittances fell to $1.9 billion for August, a 12.2% drop from the same month last year.

"In the coming months, it can be anticipated that ... family remittances will continue to show a loss in strength," Mexico's central bank said.

Remittances are Mexico's second-largest source of foreign income, after oil exports, and they have more than doubled in value in recent years, to nearly $24 billion in 2007. The money is used to pave roads, start businesses and help feed families, reports Tracy Wilkinson today.

But the trend began to reverse this year. The U.S. economic downturn, especially in the construction sector, which \employs many Mexican immigrants, and tightened controls along the U.S.-Mexican border have slowed the flow of money and people.

August's decline in remittances was the largest since authorities began keeping records 12 years ago, the bank said.

Countless Mexican towns are feeling the pinch, with small  businesses failing and families struggling to make ends meet.

Read more of the report on the drop in remittances from Mexicans living in the United States here.

Go here for more on immigration.

-- Deborah Bonello in Mexico City

Photo: Isidro Ortiz, 25, turns over $300 from his McDonald's wages to a clerk at the Mexico Express money transfer counter in Huntington Park. Besides supporting his wife and young daughter, Isidro hopes his bimonthly remittances will keep his brother in high school. Credit: Don Bartletti / Los Angeles Times

Comments

[remittance Philippines]

Oh! sorry to hear that. I think they need to have a large population, by means of immigrants.

-urieqo-

[southoc]

watch those double negatives

Most "legal" immigrants don't have large families in Mexico/Latine America they are supporting. There is a good article in the WSJ about just such an issue.

I'm sorry if yu are ignorant about the problem of "illegal" immigration in the US. It is the 2nd largest industry in Mexico.

[eljefejesus]

The mortgage crisis affects everybody.

Southoc:
What part of "this article is not about undocumented immigration" don't you understand?

[Southoc]

You forgot the word "illegal" in front of immigrants.

Please try and be accurate.