According to numbers released this month from the Bank of Mexico (Banxico), income from remittances abroad stood at $5.2 billion in June, a 16.2 percent decrease compared with June 2024.

That represents the largest drop in 13 years, according to a report from BBVA Research.

Remittances in 2024 represented approximately 3.4 percent of Mexico's gross domestic product, according to the World Bank.

Remittances are transfers of money earned in the United States to such parties as relatives, friends, or business associates abroad. Ninety-nine percent of the remittances sent in the first half of 2025 were made through electronic funds transfers, according to the BBVA report.

The drop occurred after a decade of growth. Between 2013 and 2024, remittances to Mexico almost tripled to $64.7 billion from $23 billion, according to BBVA.

Analysts attribute the decline to President Donald Trump's deportation policies and the availability of alternative methods for sending remittances.

Some have suggested that the U.S. dollar's weaker position against the Mexican peso has played a part as well.

"I think it's all of the above," said Ana Valdez, CEO at The Latino Donor Collaborative, a think tank that examines the economic impact of Latinos in the United States.

While remittances are also sent by U.S. citizens and legal immigrants, illegal immigrants frequently make the payments to Mexico and other countries. Valdez told The Epoch Times that uncertainty over immigration status for some, such as those who may have received temporary protective status, could impact remittances to Mexico.

One obvious reason for the decline in money flowing across the border is that fewer Mexicans are entering the United States, Rubi Bledsoe, a researcher with the Americas Program at the Center for Strategic and International Studies, told The Epoch Times. "It has been harder for them, I guess, to access legitimate avenues to seek asylum," she said.