Wednesday, April 25, 2012

Net zero and the Mexican economy

The Wall Street Journal notes positive economic news from Mexico, as economic activity expanded in February. With all of the talk about net zero migration, we have to remember how critical immigration remains to the Mexican economy:

Increases in employment and credit in Mexico, and growth in remittances from Mexicans living abroad, have contributed to domestic consumption, while domestic demand is expected to play a bigger role in economic expansion this year.

Overall, remittances to Mexico are increasing as the U.S. economy slowly recovers, up 8.6% in February 2012 versus February 2011, and now bring in more dollars than foreign tourism. People are still leaving Mexico in large numbers, and then sending money home, but there are so many migrants already in the United States that we're seeing equilibrium.

If anything, then, net zero migration is occurring in the context of increased Mexican economic dependence on the United States. It is fine to laud economic growth in Mexico, as long as there is acknowledgment of the increased dependence on Mexican migrants in the United States.


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