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 a reduction in transit migrants crossing through Mexico en route to the United States between 2020 and 2025. These migrants received remittances, contributing to the increase in remittance flows observed over the past four and a half years.
Who are Transit Migrants?
The Banco Mundial has identified transit migrants as individuals who pass through Mexico on their way to the United States. Jesús González Cervantes, director of the Remittances Forum at the Centro de Estudios Monetarios Latinoamericanos (Cemla), explained that these migrants participated in online programs and received remittances, which boosted the overall remittance flow.
Experts’ Estimates on Remittance Decline
Economists from BBVA estimate that the decline in remittances to Mexico, observed this year, is 5% annually and could continue in 2026. Meanwhile, experts from the Banco Interamericano de Desarrollo (BID) predict a 4.5% annual contraction, linked to base effects from the peaks in 2024.
Collaboration to Quantify Remittances from Transit Migrants
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 Grupo Salinas and Banco Azteca, receive around 40% of reported remittances in Mexico.
Migration Trends and Demographics
The Comisión Económica para América Latina y el Caribe (Cepal) 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.
- Origin of Transit Migrants: Venezuela, Guatemala, Honduras, and El Salvador were the main origin countries.
- Age and Gender: The labor migration flow is predominantly male, concentrated in working ages, with an increasing average age from 32.7 years in 2010 to 35 in 2017.
Remittances and Mobile Phones
Experts from Elektra explained that, unlike competitors who refuse services to undocumented foreigners, they have developed what they call “humanitarian visa” and other methods to validate transactions. They opened special counters for these migrants, and Banco Azteca utilized an automated bot within their app offering language translation services, including French.
Key Questions and Answers
- What are transit migrants? Transit migrants are individuals who pass through Mexico en route to the United States, often without proper documentation.
- Why are remittances declining? The decrease in transit migrants crossing Mexico is the primary reason for the decline in remittances to Mexico.
- What is the collaboration between Cemla and Banco Azteca about? They are working together to quantify the proportion of remittances received by individuals with foreign identification in Mexico.
- Which countries are the main recipients of remittances from Mexico? Haiti, Venezuela, Honduras, and Guatemala are the primary destinations for Mexican remittances.
