It was reported that the money transfers made by Latin American immigrants and refugees living abroad to their countries increased by 26 percent last year, reaching a record level exceeding 134.4 billion dollars. According to the research published by Dialogo Interamericano (IAD), about 75 percent of money transfers were made from the USA.
Among the main reasons for the record increase in money transfers are the economic recovery in the USA and the increased immigration to the USA.
Mexico was the country with the most money transfers in Latin America last year, with $51 billion. It is followed by Guatemala with over 15 billion. Guatemala is also the country where the amount of money sent in 2021 has increased the most, with an increase of 35 percent compared to the previous year.
Migrants are the engine of economic recovery in the region.
For Latin America, which has experienced one of the most severe economic crises in its history during the pandemic period, the money sent from abroad is shown as one of the most important elements of the economic recovery.
The money sent by Latino immigrants corresponds to 5 percent of the region’s gross domestic product, but there are also countries such as Honduras and El Salvador, where this rate is over 20 percent.
Experts from the Continental Development Bank (IDB) point out that the increase in money transfers to Latin America is 12.8 percent higher than the growth in the regional economy, and this difference approaches almost 25 percent in Central American countries.
Experts note that this is an indication that the post-pandemic economic recovery process is not the same in countries that receive and send immigrants, and that the money transfer made by expatriates helps families in Latin American countries, where economic problems are experienced, to cope with the crisis and to the development of the regional economy.