Friday, March 7, 2008

Mexican Worker Money Transfers Drop at a Record Pace


March 5 (Bloomberg) -- Mexicans working abroad, mostly in the U.S., reduced money transfers to their families at home at a record pace in January as a U.S. housing slump squeezed construction employment.

Remittances, the second-biggest source of dollar flows into Mexico after oil exports, fell 5.9 percent in January to $1.65 billion from a year earlier, the central bank said today. It was the biggest decline since Banco de Mexico began records in 1995.

The drop may crimp spending by Mexican families and reflects weakness in U.S. construction, the biggest employer of Mexico's migrants. Wal-Mart de Mexico SAB, the nation's largest retailer, fell for the first time in three days in Mexico City trading.

The amount of money transfers from the United States to Mexico is in its biggest decline since 1995. Many Mexican families with members working in America will be hurt by this decline in money transfers.

GRADE THIS POST

No comments: