As families talk over FaceTime with their loved ones thousands of miles away, Mexican migrants continue to support their families living in Mexico. The decision to leave Mexico for a better life is an important and impactful decision for millions of Mexican families. With more Mexicans living abroad, remittances to Mexico have increased and helped millions of Mexican families.

What Are Remittances?

Remittances are money transfers that Mexican nationals living abroad send back to their families living in Mexico. For the last decade, “remesas” (remittances in Spanish) have been a fundamental source of income for families with family members working abroad. Families across Mexico have used these money transfers to afford necessities and foster development in their communities.

Remittances’ Impact in Mexico

Mexico has a long history of using remittances as a major source of income for its citizens. For years, Mexico has been the second-largest recipient of remittances globally, just behind India. In 2023 alone, Mexico received 7.5% of global remittances, representing $63.3 billion distributed to millions of Mexicans across the country.

Remittances to Mexico account for roughly 4.5% of its total GDP. To put into perspective, remittances account for more of Mexico’s GDP than Foreign Direct Investment (FDI), tourism and manufacturing. Furthermore, remittances are transferred directly to the population, allowing families to spend this money on what they need. Many families use this money to pay rent, afford weekly groceries, or other daily expenses. Others save this money for future expenses, pay for their children’s education, or invest in their home.

In 2024 alone, remittances helped more than 1.1 million people escape multidimensional poverty across all of Mexico. Without remittances, the number of people living in poverty would increase from 38.5 million to 39.9 million.

Remittances to Mexico not only have short-term benefits for families, but they also have long-term positive impacts on the overall economy. Remittances increase the purchasing power of millions of Mexicans, which in turn increases the consumption of products that benefit local businesses. They are also used to send the younger generations to school, which can have positive impacts in the future as education levels increase nationwide.

Government Involvement

The Mexican government has recognized the positive impact of remittances across the country and has taken steps over the last year to protect these money transfers, helping millions of Mexicans.

In July of 2025, the Mexican government introduced the “FINABIEN” card and “FINABIEN” app, an electronic card that allows migrants to send money back to Mexico more safely and reliably. This new system will facilitate money transfers for migrants living abroad, decreasing the cost of sending money to their families.

Living abroad can be a difficult experience, with families having to talk online to stay in contact with their loved ones. However, living abroad has positive benefits for migrants and their families through remittances. Remittances have allowed millions of families in Mexico to improve their lifestyle and invest in their future, contributing to Mexico’s long-term development.

– Rodrigo Salgado

Rodrigo is based in Boulder, CO, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash