This is the region that will push the most the 7.3% increase in remittances sent by migrants in 2021

Posted: Nov 17, 2021 21:45 GMT

The World Bank confirms the resilience of flows that was observed in 2020, when remittances fell just 1.7%, despite the global recession due to the coronavirus.

Global remittance flows sent by migrants will grow by 7.3% in 2021 to reach 589 billion dollars, and this, in part, due to a 21.6% increase in remittances to Latin America and the Caribbean , according to estimates by the World Bank (WB).

Through a statement, the agency highlights that this return to growth confirms the resilience of flows that was observed in 2020, when remittances decreased by just 1.7%, despite the deep global recession triggered by the coronavirus.

This is, he adds, the second consecutive year in which remittance flows to low- and middle-income countries, not including China, are expected to exceed the sum of foreign direct investment and external development assistance.

“The remittance flows sent by migrants have been a fundamental complement to public cash transfer programs, which seek to help families facing economic difficulties during the covid-19 crisis,” explained Michal Rutkowski, director of the Department of WB World Social Protection and Labor Practices.

Rutkowski added that facilitating remittance flows to provide relief from tight household budgets should be “a fundamental component of public policies to promote global recovery from the pandemic. “

“Determination of migrants”

The World Bank highlights that some of the factors that contributed to the “solid growth” of these remittances was the determination of the migrants to “help their families in times of need.” Added to this is also the economic recovery in Europe and the US, which have been supported by fiscal stimulus and employment promotion programs.

Specifically, the agency explains that in Latin America and the Caribbean growth was “extremely solid” due to the economic recovery in the US and “due to the response of migrants to natural disasters in their countries of origin and remittances sent from these countries to migrants in transit. “

Mexico, the main recipient of remittances in the region, will receive 42%, which represents 52.7 billion of the total for the region. The value of remittances as a percentage of Gross Domestic Product exceeds 20% in several Latin American countries. This is the case, for example, of El Salvador (26.2%), Honduras (26.6%), Jamaica (23.6%) and Guatemala (18.0%).