Background on Transit Migrants and Their Impact
The decline in remittances directed to Mexico, which became evident in the last quarter of 2024, is primarily attributed to the reduction in transit migrants traveling through Mexico towards the United States between 2020 and 2025. These migrants received remittances, which contributed to the increase in remittance flows observed over the past four and a half years.
Who are Transit Migrants?
According to Jesús González Cervantes, the director of the Remittances Forum at the Center for Latin American Monetary Studies (Cemla), transit migrants are individuals identified by the Banco Mundial. They pass through Mexico en route to the United States, receiving remittances that have supported the growing remittance flows in Mexico.
Experts’ Estimates on Remittance Decline
Economists from BBVA estimate that the decline in remittances to Mexico, observed this year, is 5% annually and may continue in 2026. Meanwhile, experts from the Inter-American Development Bank (BID) predict a 4.5% annual contraction, linked to base effects from the peaks in 2024.
Collaborative Efforts to Quantify Remittances
Cemla is currently working with Banco Azteca to quantify the proportion of remittances captured in Mexico by individuals with foreign identification. Elektra stores, part of the Grupo Salinas conglomerate and Banco Azteca, receive around 40% of reported remittances in Mexico.
Migration Trends and Demographics
The CEPAL (Economic Commission for Latin America and the Caribbean) estimated that between 2021 and 2024, the volume of foreigners arriving in Mexico without proper documentation quadrupled, aiming to continue their journey to the United States.
- Venezuela was a significant origin country during this period.
- Guatemala, Honduras, and El Salvador also contributed notably.
These migrants, primarily young and male, have been crossing Mexico in increasing numbers, with an average age rising from 32.7 years in 2010 to 35 in 2017.
Mobile Phones and Remittances
Experts from Elektra explained to the media that, unlike competitors who refuse services for undocumented foreigners, they have developed what they call “humanitarian visa” policies and alternative validation methods for transactions received.
- Special windows were opened to cater to these migrants.
- Language barriers were addressed by offering language change services through the app, including French.
Eduardo Levy, Director of Remittances at Grupo Elektra, confirmed that this trend indicates the persistence of transit migration and that many displaced Latin Americans have settled in Mexico, working and earning income to send resources back to their home countries.
- Principal remittance destinations from Mexico are Haiti, Venezuela, Honduras, and Guatemala.
Key Questions and Answers
- What are transit migrants? Transit migrants are individuals passing through Mexico en route to the United States, receiving remittances that contribute to growing remittance flows in Mexico.
- Why are remittances to Mexico declining? The decline is primarily due to the reduction in transit migrants traveling through Mexico towards the United States.
- What organizations are studying transit migration? The Banco Mundial, Inter-American Development Bank (BID), and CEPAL have analyzed transit migration trends.
- What are the demographics of transit migrants? Transit migrants are predominantly young, male, and their average age has been increasing.
- How are remittances being managed amidst transit migration? Financial institutions like Elektra and Banco Azteca have implemented policies such as “humanitarian visas” and language change services to cater to transit migrants.
