Fewer Mexicans Are Sending Money Home
One in three Mexican migrants living in states where Hispanic migration is relatively new stopped sending money home this year. Anti-immigrant sentiment may be to blame, the Inter-American Development Bank reported Wednesday.
In states considered "new destination" states for Latinos, such as Georgia, Pennsylvania and North Carolina, only 56 percent of Mexican migrants said they sent money home, compared to 80 percent the previous year. Migrants in these states previously had the highest remittance rate.
By contrast, the rate of remittance for the first six months of this year was 66 percent - down from 68 percent - in states where Latino immigrants have traditionally lived, such as Texas, California and New Mexico. An estimated 10.4 million Mexican immigrant adults are living in the U.S., according to the Census Bureau.
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Remittances totaled $11.5 billion from January to June, compared to $11.42 billion last year. The Central Bank of Mexico has reported remittances from the U.S. totaled $23.1 billion in 2006. The Inter-American bank projected only a .6 percent increase this year. Although more Mexican migrants are in the U.S., the drop in remittances offset the newcomers and kept the amounts flat, Terry said.
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Remittances to El Salvador, Guatemala and Honduras rose by an average of 11 percent in the first half of 2007, with a projected total for the year of $9.95 billion for Central American, up from $9.25 billion in 2006.
Combined 2006 GDP of El Salvador, Guatemala and Honduras = $59 billion, or US remittances = 16% of GDP. Assuming a dollar exchanges hands 3 times before leaving the country, remittances drive 50% of GDP.
Posted by: ed 2007-08-09 |