2010 remittances end the year in positive territory

· Remittances recorded annual 9.1% growth in dollars in December. As a result, accumulated growth during 2010 was 0.1% in dollar terms. This is within the range forecast by BBVA Research at the end of 2009. The loss of momentum in certain variables linked to remittances from the USA –particularly the recovery in employment and the construction industry- undermined this recovery

· Some states were affected, whilst others saw their remittance revenues increase. The most significant decreases occurred in Chiapas, Hidalgo, Veracruz and the State of Mexico; the largest increases were recorded in Sonora, Baja California Sur and Baja California

· We expect this recovery in remittances to continue in 2011. Mexico may attract a little over 22 billion dollars, with annual growth in dollars of over 3%. However, in our base-case scenario we do not expect 2007 levels to be achieved again until 2012 or perhaps even 2013