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The Habanero Blog
30 septembre 2004

After years of revolutionnary rule, Mexico looks like Cuba:

Another boost to the economy comes from Mexican salaries abroad. Remittances -- money sent back to Mexico by Mexicans working in the United States and elsewhere -- rose by almost 26 percent during the first half of 2004, according to figures from the Banco de México.

Growing at a fast clip for more than two years, remittances could top $16 billion this year, rivaling or surpassing oil exports and foreign direct investment as the largest source of foreign exchange.

''Not only does it help in foreign exchange, it helps in supporting domestic demand,'' said Shelly Shetty, director of sovereign ratings at FitchRatings in New York.

But there is concern that jobs abroad and not at home are becoming one of the motors of some Mexican communities' economies, particularly those in rural areas.

''People do talk about this, that we have become addicted to remittances,'' said Carlos Heredia, a Mexican economist.

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