Remittances to Latin America and the Caribbean in 2013 still not back to pre-global-crisis levels

Posted on Tuesday, 06.10.14



Remittances to Latin America and the Caribbean in 2013 still not back to

pre-global-crisis levels

The Multilateral Investment Fund says money transfers to the Americas

were not back to to pre-2008 levels last year but that remittance levels

will likely rise this year.

BY MIMI WHITEFIELD

MWHITEFIELD@MIAMIHERALD.COM



A study released Tuesday shows that the money sent home by migrants from

Latin American and the Caribbean reached $61.3 billion last year, with

three-quarters of those remittances coming from the United States.



The report by the Multilateral Investment Fund, a member of the

Inter-American Development Bank Group, found that remittances to the

Caribbean and Central America increased, but money flows to Mexico,

which received $21.6 billion in remittances, and South America were down.



Overall, remittances — considered an economic lifeline for many families

in the region — still haven't recovered to the levels before the

2008-2009 global economic crisis. Remittances reached a high of $64.9

billion in 2008 before plummeting by more than 10 percent the next year.



Remittances began to grow again in 2011 but have remained fairly flat

since then. There was virtually no growth between 2012 and 2013



The strengthening of the economies of European nations and the United

States and more positive labor trends are expected to boost remittances

to the Americas by 5 to 7 percent in 2014, the MIF said.



While Mexico remained the largest recipient of remittances in the

Americas, lower migration from Mexico has affected remittance levels,

which fell 3.8 percent in 2013.



Guatemala ranked second as a remittance recipient with $5.1 billion,

followed by Colombia ( $4.1 billion), El Salvador with nearly $4

billion, the Dominican Republic ($3.3 billion), Honduras ($3.12 billion)

and Peru ($2.7 billion). Politically-torn Venezuela, received just $836

million in remittances, and Brazil, the largest country in Latin

America, received $1.62 billion.



Jamaicans sent $2.07 billion home and Haitians contributed $2.02 billion

to family and friends at home. Cuba wasn't included in the MIF analysis.



Remittance levels to Central America were the first to show signs of

recovery after the global crisis, according to the MIF. The average

annual growth in remittances to Central American nations last year was

5.4 percent.



The Dominican Republic — with annual growth of 5.5 percent — helped

boost overall remittances to the Caribbean, which grew by 3 percent.

Other Caribbean countries showed growth rates of 1.3 percent to 1.6 percent.



Remittances sent to South America come from several main sources,

including the United States, Spain, and Japan, which contributes mostly

to Brazil and Peru. An estimated 21 million Latin American and Caribbean

migrants were living in the United States at the end of 2013.



Remittances flows between South American countries — for example, from

Brazil and Argentina to Bolivia — are also part of the equation in South

America. Overall, remittance payments to South American nations fell 1.5

percent in 2013 — although they began to show signs of growth in the

second half of the year.



Resources sent from abroad are mainly used to cover families' basic

expenses, according to the MIF. Because migrants want to get the maximum

bang for their buck, factors such as high inflation and unfavorable

exchange rates at home can impact remittance levels.



Source: Remittances to Latin America and the Caribbean in 2013 still not

back to pre-global-crisis levels - Business - MiamiHerald.com -

http://www.miamiherald.com/2014/06/10/4170145/remittances-to-latin-america-and.html