Friday, April 18, 2008
The economic downtown in the U.S. is affecting the remittance rate among immigrants as well. Manuel Roig-Franzia reports in the Washington Post:
The effects of the subprime mortgage crisis and the downturn in the U.S. economy have cascaded into Mexico, causing a sudden, precipitous drop in the flow of money sent home by Mexican immigrants and highlighting this country's dependence on its wealthier northern neighbor.
In January, the cash transfers, known as remittances, sagged almost 7 percent compared with a year earlier, the steepest monthly dip in at least 13 years, according to Mexican government statistics. Economists here believe the decline in remittances is already pushing thousands into extreme poverty and could lead to a significant increase in migration as desperate Mexicans, deprived of support from abroad, flee to an ever more difficult U.S. job market. Click here for the rest of the story.