Mexico remittances continue record run in September

MEXICO CITY, Nov 3 (Reuters) - Remittances sent to Mexico, a major support for the economy and low-income families, rose in September to their third-highest level on record after hitting their second-highest level the prior month, central bank data showed on Tuesday.

Remittances to Mexico in September were $3.568 billion, from $3.574 billion in August and $3.101 billion in September 2019, as Latin America’s second-largest economy was reeling from the impact of the coronavirus pandemic.

Remittances have been on a record run this year.

They reached their all-time high since records began in 1995 in March of this year. The six best months for remittances were all logged in 2020.

Most of Mexico’s remittances are sent by the millions of Mexicans living in the United States and are a pillar of support for Latin America’s second-largest economy, which is on track for its steepest slump this year since the Great Depression of the 1930s.

“Solid workers’ remittance flows have been adding support to the current account and to private consumption, particularly for low-income families, who have a high propensity to consume and are the overwhelming recipients of such transfers,” said Goldman Sachs economist Alberto Ramos. (Reporting by Anthony Esposito; Editing by Lisa Shumaker)