### Primary Article:
**Mexico’s Remittance Inflows Decline by 1% in July 2024**
In July 2024, Mexico experienced a 1% year-on-year decline in remittance inflows, totaling $5.6136 billion in comparison to June’s record high of $6.207 billion. This downturn follows a notable increase of 11.3% in June 2024 and a 3.3% drop in March of the same year.
Despite the decrease, cumulative remittances from January to July 2024 reached $36.94 billion, reflecting a 2.9% growth compared to the same period in 2023. According to data from the Bank of Mexico (BANXICO), the average remittance per transaction grew by 0.9% to $395, and the number of transactions increased by 1.9%, reaching 93.61 million transactions, 99% of which were electronic transfers.
Additionally, outbound remittances from Mexico to other countries amounted to $796 million in the first seven months of 2024, a substantial 31.7% year-on-year rise. The Mexican peso also experienced a depreciation of nearly 2% against the U.S. dollar during July 2024, with the exchange rate exceeding 18 pesos per dollar.
President Andrés Manuel López Obrador acknowledged the contributions of the nearly 40 million Mexicans residing in the United States in his final State of the Union address on August 1, 2024, expressing gratitude for the remittances that benefit around 12 million families in Mexico. He projected that by the end of the year, remittances would total $65 billion, benefiting 4.9 million households, or 13% of all families in the country.
On August 29, 2024, BBVA Mexico forecasted that remittances would represent 3.4% of Mexico’s GDP, reaching approximately $66.5 billion. BBVA’s economic analysis department noted that remittances to Mexico have grown significantly, increasing by 70% from 2019 to 2023.
### Secondary Article:
**Global Trends in Remittances: Insights and Projections**
According to a recent report by the World Bank, global remittances are projected to reach a record $800 billion in 2024, driven by strong economic growth and increasing migration flows. India, China, and Mexico remain the top three beneficiaries of remittance flows, with India expected to receive $100 billion, followed by China with $70 billion, and Mexico with approximately $66.5 billion.
The World Bank highlights technological advancements in digital transfers and mobile banking as pivotal factors contributing to the ease of sending remittances. These technological innovations have significantly reduced transaction costs and increased the efficiency of money transfers across borders.
Furthermore, the report emphasizes the critical role of remittances in supporting household incomes and local economies, particularly in low- and middle-income countries. Remittances often exceed foreign direct investment (FDI) and official development assistance (ODA) in these regions, underlining their importance for economic stability and growth.
The International Monetary Fund (IMF) also noted that remittances play a stabilizing role, especially during economic downturns, as they provide a consistent source of income for families and contribute to economic resilience. However, the IMF cautioned that overreliance on remittances could expose economies to external shocks and emphasized the need for diversified economic strategies.
As the global economy continues to recover post-pandemic, remittance flows are expected to remain robust, bolstered by ongoing improvements in financial technology and the sustained growth of migrant communities worldwide. This positive outlook underscores the enduring importance of remittances in global economic dynamics.