Variable Impacts: State-level Analysis of the Slowdown in the Growth of Remittances to Mexico

While remittances are widely recognized as stable sources of external finance for developing countries, Mexico experienced an uncharacteristic slowdown in remittance growth during the first semester of 2007.

This report offers a deeper examination of this slowdown by comparing remittance flow figures among Mexican states from 2003 to 2007. The report’s findings indicate variable growth of remittance flows and uneven levels of dependency among states, which suggest that certain regions of Mexico may be particularly vulnerable to risks associated with remittance fluctuations.