Thread: Remittances Drop in Mexico

If this is correct there are less illegals coming. Now if those here would leave or be forced to do so.

http://www.miamiherald.com/154/story/170204.html

Remittances attract attention of officials, analysts
BY JANE BUSSEY
jbussey@MiamiHerald.com

The importance of remittances to national finances in Latin America has become the Holy Grail of development.

When the amount of household remittances started to eclipse other types of capital flows such as international lending or foreign investment in the early part of the decade, officials and analysts began looking for ways to harness the funds for productive activities.

The Inter-American Dialogue called the funds ''Latin America's most valuable financial resource'' in a 2003 report. Indeed, with remittances rising by 20 percent annually starting in 2000 when analysts began seriously tracking the funds, continued steady growth seems like a sure bet.

So when the amount of remittances fell sharply in the first months of 2007, some analysts warned that governments should consider remittance flow more volatile.

The flow of funds, which reached $62 billion to the region in 2006 ($46.5 billion from the United States), rose by only single digits in the first part of the year, according to both Banco de México and Inter-American Development Bank data.

In Mexico, household remittances have grown by less than 2 percent in the first five months of the year. From January to May of 2006, remittances totaled $9.32 billion, compared to $9.48 billion in this period of 2007.

HOUSING CONNECTION

Financial analyst Walter Molano was the first to suggest that the drop could be traced to the slump in the U.S. housing sector, noting the ''worrisome correlation'' between U.S. housing starts and remittance data.

Mexico's monthly remittances hit a record high of $2.6 billion in May 2006 -- the same time housing starts reached their peak, said Molano, who is head of research at the Greenwich, Conn.-headquartered BCP Securities.

Not only could this create problems for individual families, but Molano pointed out that some Central American governments were counting on steady increases in remittances for future balance of payments projections.

Banco de México economist Salvador Bonilla Leal said that authorities have expected the slowdown.

BETTER RECORDS

Part of the rapid expansion during the decade was a question of improved data, Bonilla said. Mexico began actually recording the amount of money after new rules in 2002 required that all money transfer companies register with the central bank and provide monthly information on all money transfers to Mexico.

''We have seen all the problems [with immigration] in the United States. It's now more difficult to enter the country,'' said Bonilla, who manages statistical analyses for Banco de México. ``There is the other factor: the economic slowdown in the United States.''

The latest remittance data has also led the Pew Hispanic Center to suggest that the actual pace of immigration from Mexico to the United States may be slackening.

A May report from the Washington organization also cites a drop in the number of apprehensions of people crossing the border, a slower rate of increase in the size of the Mexican-born population and a drop in the employment of foreign-born Hispanics as signs of a slower increase in migration.

A May report from the Washington organization also cites a drop in the number of apprehensions of people crossing the border,

I am always a little skeptical of these reports. I don't think it necessarily means there are fewer people approaching the border; they are just not being arrested.

the remittances are what are spuring mexico to encourage its people to break our immigration laws. we need to tax the ever living $$$ out of them. the majority of this money was probably never taxed in the first place and that does not even take into account the amount of social services these foreign nationals are costing the American taxpayer. now we need to find some politicians who want to protect this once great country.

There should be a 10% surcharge on every remittance.

I say 50 percent

Don't believe this propaganda for a moment...it's a" Red Herring " attempting to get anti-illegal immigration groups and people to think that illegal border crossing are abating. NOT! Keep working as hard as ever and don't let up on pressure to secure the borders, enforce all existing immigration laws, and deport those apprehended.

Originally Posted by redbadger

I say 50 percent

I say 90% to help cover the costs of hospitals and schools.

I think it is propaganda also.

Just like all these arrests of 5 and 6 and 12. Big deal.
We also never hear what happens to those. They may round up 5 - let 4 go and make the other promise he/she will return for deportation hearings.

We are getting flim-flammed.

Just my opinion -

Originally Posted by swatchick

If this is correct there are less illegals coming. Now if those here would leave or be forced to do so.

...said Bonilla, who manages statistical analyses for Banco de México. ``There is the other factor: the economic slowdown in the United States.''

Well, DUH! Remove $20 billion from the U.S. economy every year to send to Mexico and what do you expect? The U.S. economic cycle depends upon people who make money here spending that money here.

Originally Posted by MinutemanCDC_SC

Originally Posted by swatchick

If this is correct there are less illegals coming. Now if those here would leave or be forced to do so.

...said Bonilla, who manages statistical analyses for Banco de México. ``There is the other factor: the economic slowdown in the United States.''

Well, DUH! Remove $20 billion from the U.S. economy every year to send to Mexico and what do you expect? The U.S. economic cycle depends upon people who make money here spending that money here.

That's just another part of the scheme to destroy this country.