In the first 6 months of the year, Mexican immigrants sent $11.4 billion to their native country, according to estimates by the Central Bank of Mexico. That is about the same as last year, which is seen as a significant slowdown, since earlier figures grew by 10% each year, reflecting population growth. Overall, 64% of Mexican immigrants sent money home during the evaluated period, compared to 71% last year.
The Inter-American Development Bank surveyed Mexican immigrants living in the U.S. in order to shed light on the slowing remittances. The poll found the 56% of the 2 million Mexican immigrants in states with newer immigrant populations sent money back to family in Mexico this year, compared to 80% last year. The “new migration” states, including Louisiana, North Carolina, Pennsylvania, and Georgia, have seen a recent surge in laws targeting immigrant groups including English-only laws, increased penalties for those who employ illegal immigrants, and legislation making it more difficult for migrants to obtain driving licenses and other documentation. The report showed a distinction between the “new migration” states, due in theory to these new laws, and the traditional migration states such as California and Texas, where the remittance rates have not fallen.
Remittances, transfers of money from foreign workers to their home countries, constitute the second largest financial inflow to many developing countries, exceeding international aid. Contributing to economic growth and livelihoods worldwide, remittances promote access to financial services for both the sender and recipient. The concept is not new, but rather a normal centuries-old practice as historic as migration itself. In the 19th and 20th centuries, several European countries including Spain, Italy, and Ireland were highly dependent on remittances received from their emigrants, with the practice accounting for 21% of Spain's current account income in 1946. Italy in 1901 became the first country to enact a law protecting remittances.
With a slowing of remittances from Mexican immigrants in the U.S., who account for 95% of all remittances sent to Mexico, the economic impact will become more evident over time. What the findings of the Inter-American Development Bank suggest is that U.S. state laws targeting immigrant populations have important consequences that are felt far beyond their jurisdictional reach. In a globalized and interdependent economy, the impact is in turn felt at home as well.
—–
See here for an announcement and explanation of the survey results from the Inter-American Development Bank.
