Chiaroscuros in exports and remittances for Mexico with Democrats and Republicans

With Bush, the first great growth in remittances

The remittances that enter the country from Mexicans who go to work in the United States and send to their families have also become a relevant indicator for Mexico’s economy, since it is money that goes to domestic consumption.

Under Bill Clinton, remittances registered a conservative growth rate; In his first year, they stood at 3,333 million dollars and at the end of his government they reached 6,573 million.

It was under Bush that remittances to Mexico grew exponentially. In 2001 they were 8,895 million dollars, by 2003, which was the great first moment, they skyrocketed to 15,139 million; By the closing of the Republican they touched more than 26,000 million.

In the Obama government, remittances decreased, perhaps due to the 2009 crisis; In that year they were 22,124 million dollars and they did not recover the level left by Bush until 2016.

Remittances under Trump reported a growth trend, in 2017 they reached 30,943 million dollars and in the end stood at 41,704.

The performance under Biden is also notable, reaching its highest amount in 2023, with 63,319 million dollars, although towards this year, the last of his administration, growth slowed down.

And the exchange rate?

Although the exchange rate is influenced by several factors, such as economic, political and external, on several occasions the United States has been the factor of movements for Mexico, as is the case of the next elections, analysts estimate that this will reach up to 21 pesos per dollar.

In the Clinton administration, the exchange rate averaged 3.11 pesos per dollar; With the devaluation of 1994, it went to 6.23 pesos per dollar and closed in 2000, with 9.46 pesos per dollar.

The peso under Bush had a more stable behavior, with 9.34 pesos per dollar and ended with an average of 11.14 pesos.

During the Obama administration was when the peso lost the most value against the dollar, since in 2009 it averaged 13.50 pesos per dollar and in 2016 it went to 18.69 dollars.

Under Trum, despite the uncertainty of his government’s treatment of Mexico and the pandemic, the depreciation was lower; In 2017 it averaged 18.91 pesos per dollar and ended at 21.50 pesos.

The surprise of the exchange rate has been with Biden, since the peso managed to gain ground against the dollar; Between January 1 and October 25, 2024, it averages 17.91 pesos per dollar.

Economic growth of Mexico

According to data on Mexico’s economic growth from the World Bank, the country reports its best performance under Joe Biden, this only counting his first three years, with an average of 4.3%, but if its projection of 1.5% for this year is considered year, it would grow the same as under Clinton.