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Tuesday, 20 June 2023 04:39

Remittance flows to grow 1.4% in 2023 to reach US$656 million

Written by Evelyn Alas
Remittance flows to grow 1.4% in 2023 to reach US$656 million

Officially recorded remittance flows to low- and middle-income countries are expected to grow by 1.4% to US$656 million in 2023, while economic activity in remittance-sending countries is expected to slow, limiting employment and wage increases for migrants, according to the latest Migration and Development Review published by the World Bank.

Remittance flows to Latin America and the Caribbean increased by 11.3% to US$145 billion in 2022, aided by a strong U.S. labor market.

Consejos prácticos para ahorrar las remesas familiares

Remittance growth varied widely by country, with an increase of 50% in Nicaragua, 18% in Guatemala, 17.8% in Honduras, and 9.7% in Colombia. By 2023, remittances are expected to increase by 3.3%.

However, considering that the outlook is closely linked to what happens in the slowing U.S. economy, risks are tilted to the downside.

Las remesas que mantienen con vida a El Salvador - Revista Disruptiva

The cost of sending US$200 to the region averaged 5.8% in Q4 2022, up from 5.6% a year earlier.

This edition also revises upward last year's growth in remittance flows, which rose 8% to US$647 million.

Qué son las remesas y por qué la gente las envía? - Blog | Western Union

In the post-COVID-19 pandemic period, when economic growth has been slower and there has been less foreign direct investment, remittance inflows have become more important for countries and households, given their resilience as a source of external financing, especially for low- and middle-income countries with a high level of external debt.

 

Translated by: A.M

Published in Economy
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