Remittances have been a crucial source of income for millions of families in Latin America and the Caribbean.
In 2024, the region will receive approximately US $ 160.9 billion In remittances, which represents A 5% growth compared to the previous year, according to a report of the Inter -American Development Bank (IDB).
Although the growth rate has slowed, these flows continue to be fundamental for the economy of several countries.
Next, we present the 10 Latin American countries that receive remittances and the estimated amount they obtained in 2024according to the IDB study and the economic impact on the receiving countries.
The IDB report was published in November, so could include preliminary figures; However, data from most of the months had been definitively collected.
Where do remittances sent to Latin America come from?
Remittances that arrive in Latin America mostly come from countries with a large number of Latin American migrants.
USA It is the main remittance issuing country, followed by Spain and others European countries.
Canada and some countries in South America, such as Chili and Argentinaalso They contribute With a significant part of these flows.
Economic stability and labor opportunities in these countries determine the volume and constancy of the remittances sent.
1. Mexico – US $ 65.1 billion
Mexico is the main recipient of remittances in the region, accumulating the 40.5% of the total remittances sent to Latin America and the Caribbean.
Most of these shipments come from the United States.
2. Guatemala – US $ 21.5 billion
Guatemala is the second country on the list and the first in Central America. Remittances represent a significant percentage of their GDP and come mainly from migrants in the United States.
According to data from Bank of Guatemala (Banguat), The country closed with Historic figure of US $ 21,510 million in the balance Therefore, it is higher at US $ 1,706 million to those captured in 2023 when it was US $ 19,804 million.
3. Dominican Republic – US $ 10.1 billion
This Caribbean country receives a considerable part of its remittances from the United States and Spain.
Economic stability and growth have moderated the flow of these shipments.
4. El Salvador – US $ 8.4 billion
Remittances represent approximately 24% of Salvadoran GDPwhich reflects its great dependence on these income.
5. Colombia – US $ 7.5 billion
The growth of remittances in Colombia has been driven by the increase in migration in recent years.
This South American country has registered a growth rate of 17.2% In these flows.
6. Honduras – US $ 7.0 billion
Remittances are an essential component of the Honduran economy, with most of the shipments from the United States.
7. Ecuador – US $ 4.7 billion
Ecuador has experienced an increase in the reception of remittances due to migration to countries such as Spain and the United States.
8. Peru – US $ 4.5 billion
Remittances in Peru have grown constantly and come mostly from the United States, Spain and Chile.
9. Nicaragua – US $ 3.9 billion
Remittances have grown significantly in Nicaragua, with an increase in 11.5% In 2024.
10. Bolivia – US $ 1.8 billion
Despite having a smaller economy, remittances represent an important part of the income of many Bolivian families.
What are remittances used in Latin America?
Remittances not only support families, but also impact the local economy.
According to the IDB report, the survey data, the main uses of remittances in Latin America are:
- Maintenance (88.1%): Most of the money sent is used to cover daily expenses, such as food, transport and basic services.
- Medical expenses (57.1%): Many families depend on remittances to pay for treatments and medications.
- Education (31.4%): A significant percentage is used for school and university registrations.
- Payment of debts (20.1%): Many families use remittances to liquidate accumulated loans or debts.
- Savings or business (13.8%): Some families manage to allocate part of remittances to the creation of small businesses or savings.
- Purchase of housing or remodeling (13.1%): A part of remittances is reversed in improving housing conditions.
Remittances continue to be a fundamental pillar for millions of families in Latin America. The impact they generate on the economy of receiving countries is undeniable.
In many cases, these transfers allow families to improve their quality of life, access education and health, and in some cases, invest in own businesses.