It is estimated that the remittances to Latin America and the Caribbean they have increased by 9.3% in 2022, adding a total of US$142,000 million.
The data corresponding to the first nine months of 2022 indicate an increase of 45% for Nicaragua, 20% for Guatemala, 15% for Mexico and 9% for Colombia.
The employment growth of Latin American migrants in the United States contributed to remittance flows. In turn, remittances received by migrants in transit also contributed to solid flows in Mexico and Central America.
Remittances, as a percentage of GDP, exceeded 20% in El Salvador, Honduras, Jamaica, and Haiti. In 2023, remittances are likely to grow more moderately, at 4.7%, due to less favorable economic prospects in the United States, Italy and Spain.
The cost of sending US$200 to the region averaged 6% in the second quarter of 2022, compared to 5.6% the previous year.
poverty alleviation
Remittances are one essential source of income for households in low- and middle-income countries. They alleviate poverty, improve nutritional outcomes and are associated with higher birth weights and higher school enrollment rates among children from disadvantaged households.
Studies indicate that remittances help recipient households build their resiliencefor example through financing more adequate housing, and allow them to cope with losses after a disaster.
Remittance flows to developing regions were affected by several factors in 2022. As the COVID-19 pandemic subsided, the reopening of receiving economies supported the employment of migrants and their ability to continue helping their families. in their country of origin.
The increase in prices, on the other hand, had an adverse effect on the real income of migrants. Another factor influencing the value of remittances is the appreciation of the ruble, which translated into a higher value, in US dollar terms, of remittances from Russia to Central Asia.
In the case of Europe, the weakening of the euro had the opposite effect of reducing the US dollar value of remittance flows to North Africa and other countries. In countries that experienced currency shortages and established multiple exchange rates, remittance flows