Remittances, or contributions sent by Mexicans living abroad, mostly in the United States, to their families at home in Mexico, are a substantial and growing part of the Mexican economy; they comprised $18 billion in 2005. In 2004, they became the second largest source of foreign income after crude oil exports, roughly equivalent to foreign direct investment (FDI) and larger than tourism expenditures; and represented 2.5 percent of the nation’s Gross Domestic Product. The growth of remittances has been remarkable: they have more than doubled since 1997. Recorded remittance transactions exceeded 41 million in 2003, of which 86 percent were made by electronic transfer.

The Mexican government, cognizant of the economic viability of immigrant workers, began issuing an upgraded version of the Matrícula Consular de Alta Seguridad (MACS, High Security Consular Identification), an identity document issued at Mexican consulates abroad. This document is now accepted as a valid identity card in 32 US states, as well as thousands of police agencies, hundreds of cities and counties, as well as banking institutions.

The main receptors of remittances in 2004 were the states of Michoacán, Guanajuato, Jalisco, Mexico and Puebla, which jointly captured 45% of total remittances in that year. Several state governments, with the support of the federal government, have implemented programs to use part of the remittances to finance public works. This program, called Dos por Uno (Two for every one) is designed in a way that for each peso contributed by migrants from their remittances, the state and the federal governments will invest two pesos in building infrastructure at their home communities.