Remittances will reach record in Latin America and the Caribbean

Remittances to low- and middle-income countries will grow more than expected in 2021 and Latin America and the Caribbean will likely reach a new record, becoming the fastest growing region in the world, according to World Bank estimates.

In Latin America, the increase in remittances is expected to be 21.6% by the end of the year, a new high of 126,000 million dollars in 2021, according to the review on migration and development published on Wednesday by the World Bank (WB ).

Globally, it is estimated that in 2021, remittances from low- and middle-income countries will rise 7.3% to $ 589 billion.

It would be the second year in a row that remittance flows to low- and middle-income countries – excluding China – exceed the sum of foreign direct investment and foreign development assistance, which highlights the importance of remittances as livelihood for households to meet their basic needs in times of economic hardship.

“The remittance flows sent by migrants have been a fundamental complement to public transfer programs.

of cash ”to help families during the economic crisis caused by the coronavirus pandemic, said Michal Rutkowski, world director of the World Bank’s Department of Social Protection and Labor Practices. “Facilitating remittance flows to provide relief from tight household budgets should be a fundamental component of public policies to promote global recovery,” he said.

Behind Latin America, the regions that will receive the most remittances are the Middle East and North Africa, with an increase of 9.7% compared to 2020; South Asia, 8%; Sub-Saharan Africa, 6.2%, and Europe and Central Asia, 5.3%.

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