Remittances are expected to increase by 9.1% in Latin America and the Caribbean

Officially recorded remittance flows to low- and middle-income countries (LMICs) are expected to increase by 4.2% this year to $630 billion.

This follows a near-record recovery of 8.6% in 2021, according to the latest World Bank report on migration and development released today.

World Bank says remittance flows to Latin America and the Caribbean reached $131 billion in 2021, up 25.3% from 2020 due to strong job recovery for workers born abroad in the United States.

Countries with double-digit growth rates are Guatemala (35%), Ecuador (31%), Honduras (29%), Mexico (25%), El Salvador (26%), Dominican Republic (26%). , Colombia (24%), Haiti (21%) and Nicaragua (16%).

Recorded flows to Mexico include remittances received by migrants in transit from Honduras, El Salvador, Guatemala, Haiti, Venezuela, Cuba and others.

The World Bank notes that remittances are important as a source of hard currency for several countries for which these flows represent at least 20% of GDP, including El Salvador, Honduras, Jamaica and Haiti.

In 2022, remittances are expected to increase by 9.1%, although downside risks remain.

The average cost to send $200 in the region was virtually unchanged at 5.6% in the fourth quarter of 2021 from a year earlier.