Remittances to Mexico Drop Amid Slower US Labor Market, Deportations

Mexico sees end of 11-year growth streak in remittances, a key source of income

Published on Feb. 6, 2026

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Mexico has seen a decline in remittances, a key source of income representing 3.4% of its GDP, as the U.S. labor market grew at its slowest pace since 2020 and the Trump administration removed more than 146,000 Mexicans from the country. Data from the Bank of Mexico shows the country received $61.8 billion in remittances in 2025, a 4.6% drop compared to $64.7 billion in 2024.

Why it matters

Remittances are a vital source of income for Mexico, accounting for 3.4% of its GDP. The decline in remittances could have significant economic impacts, especially in communities that rely heavily on money sent home from relatives working in the U.S.

The details

Mexico saw a 4.6% drop in remittances in 2025 compared to 2024, with $61.8 billion received compared to $64.7 billion the previous year. This contrasts with a 16% increase in remittances for the rest of the Western Hemisphere excluding the U.S. and Canada. The decline is attributed to the slower growth in the U.S. labor market and the Trump administration's increased deportation of Mexicans, with more than 146,000 removed from the country.

  • In 2025, Mexico received $61.8 billion in remittances.
  • In 2024, Mexico received $64.7 billion in remittances.

The players

Bank of Mexico

The central bank of Mexico that released the data on the decline in remittances.

Trump administration

The U.S. presidential administration that has increased deportation of Mexicans, contributing to the decline in remittances.

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What’s next

2026 could see further declines in remittances to Mexico as the Trump administration shows no signs of changing its stance on illegal immigration and the Mexican peso has appreciated.

The takeaway

The drop in remittances to Mexico highlights the economic interdependence between the U.S. and Mexico, and the potential for policy decisions in one country to have significant impacts on the other.