CNBC ECONOMY: Remittances to Mexico near a record

Gaius · 2023-10-18T16:54:08.246Z

In the 12 months ended in August, people sent more than $62 billion in remittances to Mexico, according to Banco Base.

Here is a (recent) chart from the article (Chart begins in 2018):

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Here is an older chart showing (only) the 15 years before that:

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CNBC – 18 Oct 23

Remittances to Mexico near a record but 'super peso' crimps spending power

The appreciation of the Mexican peso and increase in living costs at home pinch households receiving money from abroad.

Gaius · 2023-10-18T17:09:45.035Z

Here is a short Bloomberg article from Oct 2021, which I believe is when the current record for US remittances to Mexico was set.

Remittances to Mexico Top Estimates, Signal Record as U.S. Booms

Money sent from abroad hit $4.74 billion in August, a new high

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Remittances sent to Mexico reached another record in August, a sign that contributions from workers in the U.S. continue to help Latin America’s second-largest economy while its recovery remains uneven. . . .

The U.S. economic recovery and stimulus payments have allowed Mexican workers abroad to send a growing amount of their income and savings back home. Each transfer has averaged $387 in August, the central bank said.

https://www.bloomberg.com/news/articles/2021-10-01/remittances-to-mexico-can-t-stop-growing-thanks-to-u-s-boom

biggestal99 · 2023-10-19T10:43:22.257Z

on a completely different note. household wealth went up 37% between 2020 and 2022.

“WASHINGTON (AP) — The net worth of the typical U.S. household grew at the fastest pace in more than three decades from 2020 through 2022, while relatively low interest rates at that time made it easier for households to pay their debts, according to a government report Wednesday.

Wealth for the median household — the midpoint between the richest and poorest households — jumped 37% during those three years, the Federal Reserve reported, to nearly $193,000. (The figures are adjusted for inflation.) The increase reflected primarily a jump in home values and higher stock prices and a rise in the proportion of Americans who own homes and stocks.“

whats your take on that stat?

Allan

Gaius · 2023-10-19T11:10:03.840Z

biggestal99:

the midpoint between the richest and poorest households — jumped 37% during those three years,

Mathematically that happens the instant the top 50% gain 37%.
The bottom 50% could have stayed the same or even gotten worse off
That’s the problem with “median”

Note also:
Imagine you own a nice house and a nice retirement fund.
$1 increases 12% in 2020. It is worth $1.12
Up another 12% ins 2021. It is now worth $1.2544
Up another12% ins 2022, et Voilà it is worth $1.4049

Wow that’s a 40%.

(more)

Gaius · 2023-10-19T11:17:19.372Z

Here’s the “more”

$790b in (ahem) “nonrecourse loans” was given out at that time.
Family of 4 got $11,400 in stimmy payments at that time.
the Fed lowered interest rates to zero and bought up so many MBS it now owns a third of all mortgages. That drove the paper value of homes and stocks up.

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Pandemic Oversight

Update: Three rounds of stimulus checks. See how many went out and for how much.

While you may have heard them referred to as stimulus checks, the Economic Impact Payments were, for the most part, direct deposited into bank accounts or sent out as bank cards. More than 476 million payments totaling $814 billion in financial...

Gaius · 2023-11-05T16:53:29.494Z

And another new record.

The article above refers to “the 12 months ended in August,”
(US set a new record for remittance to Mexico then)

September remittances were even higher. Yay!!!
(Wait, how do you say “Yay!” in Spanish?)

From the new article (link below)

Remittances to Mexico have continued their stellar trajectory with another record-breaking figure in September, marking 41 consecutive months of year-on-year increases – a period dating back to June 2020.

Mexicans working abroad sent US $5.61 billion back to their families in September, an 11.4% increase from the same period in 2022. It was the third-highest monthly amount reported since records began, after the $5.7 billion received in May and $5.65 billion in July.

Mexico News Daily – 2 Nov 23

Remittances to Mexico again reach historic highs

Money sent back to Mexico from abroad continues to rise, with more than US $5.6 billion received from abroad in September alone.

Est. reading time: 3 minutes

Guvnah · 2023-11-05T17:48:39.905Z

Gaius:

(Wait, how do you say “Yay!” in Spanish?)

Perhaps, OLE!!