Statistics for 2014 reveal a new record high for remittances sent to Latin America and the Caribbean.
According to a press release from the Inter-American Development Bank (IDB), the 2014 figures are linked to the “recovery of the economy and labour market in the United States.” Mexico is the largest recipient with remittances valued at of US$23.6 billion, an increase of 8 percent over the 2013 figures; Central America saw a 7.4% increase and the Caribbean received a 6.3% increase.
South America, however registered a decrease of 1% which is believed to be a reflection of the economic situation in Spain, one of the major sources of remittances to that sub-region. The second largest remittance to Latin America of US$5.5 billion went to Guatemala, the Dominican Republic received US$4.5 billion, El Salvador had a total of US$4.2 billion and US$4 billion went to Colombia.
Fernando Jimenez-Ontiveros, Acting General Manager of The Multilateral Investment Fund (MIF), a member of the IDB Group said, “Remittances remain an important source of income for millions of families in Latin America and the Caribbean.” Further, Jimenez-Ontiveros said the improvement of technology resulted in a decrease in remittance fees but continued work is essential so as to allow for savings and investment opportunities for those recipients of remittances.
Although the record high 2014 figures do not match those of 2008 where it reached almost $65 billion, the MIF-IDB report noted, “the recovery of remittances is projected to continue or even accelerate in 2015, given the growth forecasts for the United States, Spain and Latin America.”
