LatinNews Daily - 20 February 2020

* Credit ratings agency Moody’s Investors Service has noted that “after a decade of constant growth, Mexico’s economy shrunk by 0.1% in 2019, but it will probably recover to 1% in 2020 and 2.1% in 2021”. According to a Moody's report, remittances from the US have increased over the last five years, bringing in US$36bn annually or 3% of GDP. Remittances support household consumption in Mexico, particularly in the construction materials sector. The report cites senior vice president of Moody’s, Gersan Zurita, as warning that any decrease in employment or income in the US could impact consumption in the Mexican states which most depend on remittances as a source of income. According to the report, 97% of Mexican migrants work in the US, 35% of whom work low-paid jobs in industries such as construction and manufacturing. Michoacán, Jalisco and Guanajuato are the states which receive the most remittances, accounting for 10% of total remittances.

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