While the COVID-19 pandemic upended economies worldwide, Mexico witnessed an unexpected lifeline: remittances from abroad surged to record levels in 2020. Despite widespread job losses and economic uncertainty, migrants working overseas sent home $40.6 billion – a nearly 11% increase compared to pre-pandemic levels.
Analysts suggest this rise reflects both resilience and desperation. Many migrant workers prioritized supporting families facing reduced incomes in Mexico, where informal labor markets collapsed. Strengthened social networks and digital payment platforms also enabled faster, cheaper transfers, with apps like TransferMate and Wise gaining traction among younger diasporas.
The influx offered critical relief as Mexico’s GDP contracted by 8.5% in 2020. “These funds became a vital safety net,” noted economist Laura García, highlighting how remittances now outpace tourism revenue and foreign direct investment in some regions.
Reference(s):
cgtn.com
