Remittances to Latin America and the Caribbean set new record

WASHINGTON, CMC – The Inter American Development Bank (IDB) Thursday said that remittances received by Latin American and Caribbean (LAC) countries are projected to reach a record US$155 billion in 2023.

The Washington-based financial institution in a new report said the record revenue would be achieved if the current trends continue.

According to the IDB, the 2023 figure would be an increase of 9.5 per cent compared to the US$142 billion received last year, completing 15 consecutive years of growth.

It said the sustained growth of remittances reflects new intra-regional migratory flows and the contribution that migrants make to their countries of origin.

“Despite...the COVID-19 pandemic, remittances to Latin American and Caribbean countries have shown sustained growth of around 10 per cent annually for the past 10 years,” the IDB said.

It said this increase in 2023 is mainly explained by the growth in remittances received by Central American countries of 13.2 per cent, the growth in remittances received by Mexico of 9.8 per cent, and the growth in remittances that South America received of 7.9 per cent.

In the case of the Caribbean countries, growth in 2023 is a more moderate 2.6 per cent.

The new IDB report also offers a detailed analysis of the origins and destination of remittances to the countries of the region based on data published by the Central Banks.

“The amount estimated for the year reflects the increase in the income of migrants, who improved their employment rates, as well as the progress of the migration process in previous periods, which allowed an increase in the flows of remittances received by families in the countries of origin,” the IDB added.

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