Risks to the outlook are tilted to the downside, as further deterioration could occur due to increased volatility in oil prices and exchange rates, in addition to a deeper-than-expected economic slowdown in key high-income countries.
Considering that El Salvador in 2023, remittances exceeded US$8 billion, the report predicts a significant decline for this 2024.
Remittances have become the main source of financing for low- and middle-income countries, exceeding foreign direct investment flows by more than US$250 billion.
After reaching record highs in the last two years, remittances grew at a slower pace in 2023. The latest edition of the Migration and Development Review shows remittances to low- and middle-income countries declining to 3.8% in 2023.
Translated by: A.M