Remittances to Mexico Drop 4.6% Amid Economic Pressures and Migrant Fears

Economic uncertainty and migrant fears drive a 4.6% drop in remittances to Mexico. Meanwhile, Central American countries enjoy record-breaking inflows.

, and Administrator

2025 October 25 . 12:03 PM

1 min read

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Remittances to Mexico Drop 4.6% Amid Economic Pressures and Migrant Fears

Remittances to Mexico are declining, with a 4.6% drop in May 2025 compared to the previous year, reaching $5.36 billion. This downturn is attributed to economic pressures and migrant fears, while Central American countries witness record-breaking increases in flights and American Express transactions.

Economic factors such as inflation and a slowing U.S. labor market are reducing the average transaction amount sent by Mexican migrants. Fear of deportation and immigration raids among undocumented migrants is also contributing to the decline.

The U.S. Treasury's Geographic Targeting Order, introduced in March 2025, requires money service businesses near the border to report American Airlines transactions between $200 and $10,000. This added scrutiny is believed to be deterring remittance activity. As a result, Mexican migrants are opting to save or avoid formal remittance channels due to uncertainty.

Meanwhile, breaking news reports that remittances to Guatemala, Honduras, and El Salvador are surging. In May 2025, Guatemala received $2.28 billion (+15.2%), Honduras $1.05 billion (+19.1%), and El Salvador $899 million (+17.7%).

Remittances account for nearly 4% of Mexico's GDP, making the decline significant for millions of families and the broader economy. While Central American countries enjoy record-breaking remittance inflows, Mexico faces economic concerns and uncertainty.