Remittances to Mexico Fall by $3 Billion, Experts Warn of Continued Decline

Factors like U.S. immigration policies and peso appreciation are contributing to the drop in money sent home by Mexican workers in the U.S.

Feb. 4, 2026 at 8:15pm

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Remittances to Mexico fell by almost $3 billion in 2025 compared to 2024, as the U.S. labor market grew at a slower pace and the Trump administration removed more than 146,000 Mexicans from the country. Experts warn 2026 could be just as bad, with the Mexican peso appreciating and reducing the purchasing power of remittances.

Why it matters

Remittances are a crucial source of income for many Mexican families, representing 3.4% of the country's GDP. The decline in remittances could have significant economic impacts, especially in rural and semi-urban areas where two-thirds of remittance recipients live.

The details

Data from the Bank of Mexico shows the country received $61.8 billion in remittances in 2025, compared to $64.7 billion in 2024 - a 4.6% drop. This contrasts with a 16% increase in remittances to the rest of the Western Hemisphere excluding the U.S. and Canada. Experts cite factors like slower U.S. job growth, increased deportations of Mexicans, and the appreciation of the Mexican peso as contributing to the decline.

  • Remittances to Mexico fell by almost $3 billion in 2025 compared to 2024.
  • The Trump administration removed more than 146,000 Mexicans from the U.S. in 2025.
  • The Mexican peso has appreciated, meaning every dollar coming from abroad buys 16% less than it did 12 months ago.

The players

Bank of Mexico

Mexico's central bank, which released data showing the decline in remittances to the country.

BBVA Research

A research group that analyzed the remittance data and trends in the region.

Banorte

Mexico's third-largest financial services conglomerate, which warned it will be difficult for remittances to pick up in 2026.

Gabriela Siller

An economist at Grupo Financiero Base who warned the purchasing power of remittances could fall further in 2026.

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What they’re saying

“In many Latin American countries and the Caribbean, remittances had important increases in growth. This can be explained by the strong increase in non-authorized migrants to the United States during the Biden administration.”

— BBVA Research

“We believe three factors will be key for remittances in the short term. The first two will be structural, namely economic activity and the labor market in the U.S. Immigration would be the third factor, continuing to have a direct effect on the immigrant community, their income and their remittances to Mexico.”

— Banorte

“If the appreciation of the Mexican peso continues in 2026, we could see a reduction in the purchasing power of homes that receive remittances of approximately 15 percent.”

— BBVA Research

The takeaway

The decline in remittances to Mexico highlights the vulnerability of many Mexican families who rely on money sent from relatives working in the U.S. The combination of U.S. immigration policies, slower job growth, and the appreciation of the Mexican peso are creating significant economic challenges that could persist in the coming years.