Where do remittances sent to Mexico end up?

Remittances are a substantial part of Mexico's economy , but where do they end up when they are sent?

Every year, one in eight people worldwide sends or receives remittances, which benefit 800 million people and are the result of the efforts of 200 million migrant workers who transfer money to their homes , the International Fund for Agricultural Development (IFAD) highlighted.

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On the occasion of the International Day of Family Remittances, which was celebrated on June 16, More than 50% of these arrive in rural areas, where 75% of the world's poorest people live, who also suffer from food insecurity. .

In the last 20 years, these flows have increased fivefold , despite the large number of adverse events across the globe, IFAD stated in a report.

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He noted that in more than 80 countries, remittances constitute at least 3% of their Gross Domestic Product (GDP) and drive socioeconomic transformation and growth, especially in rural areas.

The United Nations General Assembly (UNGA) established the International Day of Remittances in 2018, but IFAD had already done so in 2015, as a way to recognize the efforts made by migrants around the world.

India, Mexico and China

The most recent data available from the World Bank (WB) indicate that so-called “migradollars” totaled $685 billion in 2024, after growing 5.8 percent .

India led the way with over 125 billion, and Mexico was second, accounting for 10% with 64.745 billion .

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BBVA Research highlighted that further Half of the world's remittances are concentrated in just 10 countries , including China, the Philippines, France, Egypt, Pakistan, Bangladesh, Nigeria and Guatemala.

In Mexico's case, according to the Observatory of International Migration and Human Mobility, remittances represent more than 3.7% of GDP and 0.2% of the size of the United States economy , where they primarily originate.

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By 2030, they will reach $5 trillion worldwide , according to IFAD forecasts, and these funds will likely be allocated to rural areas, where they can help millions of people escape poverty.

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