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The most recent report on migration and development from the World Bank confirmed that, in the midst of the wave of migration, especially to the United States, remittances from Latin America continue to increase and break historical records year after year.
In fact, after the Covid-19 pandemic, foreign currency remittances from expatriate immigrant workers have added an additional USD 20 billion, according to data and estimates from the multilateral organization.
However, the same report warns of a possible slowdown in the pace of growth of remittances, after reaching historical highs and to the extent that adjustments are registered in the growth of the economies of the countries receiving Latin American migrants.
Analysts observe how in some Latin American countries remittances have even surpassed exports in value. of some of its products. The senior economist at BBVA Research in Mexico, Juan José Li, explained that “there are countries in Central America like Honduras where remittances represent around 27% of their Gross Domestic Product (GDP).”
He added that “others, such as El Salvador and Haiti, receive resources equivalent to 25% of GDP, while in Guatemala and Nicaragua they have reached levels of 20% of GDP. That is to say, there are countries in the region in which remittances are a large percentage of all the value that is generated in the economy.”
The largest recipients of remittances
Data from the World Bank indicates that while in 2021 the region received USD 130,000 million in remittances; In 2022 the figure rose to USD 145,000 million. It is estimated that at the end of this year and in 2024 the transfers will exceed USD 150,000 million.
During the first eight months of this year, The country that registered the most income from remittances was Mexico, with an estimated value of USD 41,459 million. They follow him Guatemala with USD 13,074 million, Dominican Republic with USD 6,769 million, Colombia with USD 6,519 million and Honduras with USD 6,114 million.
The BBVA spokesperson in Mexico, in matters of migration and remittances, also explained that these growing foreign exchange flows in Latin American countries are subject to the behavior of the US economy and recalled that for two years there has been talk about the possibility of a slowdown, which could also end up affecting the growth of remittance income.
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