The Inter-American Development Bank (IDB) is projecting that remittances to countries in Latin America and the Caribbean will reach a historic high in 2024 despite growing at their slowest pace in 10 years. In a recently shared report, it predicts Caribbean countries will receive US$18.4 billion in remittances, a two percent growth, similar to that observed in 2023.
It said if the trend continues, the region will receive US$161 billion in remittances in 2024, a five percent increase compared to 2023.
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The Washington-based financial institution said the estimated slowdown for this year is attributed to the combination of lower human mobility in 2023 with a slower labor market growth for migrants abroad, coupled with a relative improvement in the economies of Central American and Mexican recipient countries, which reduces the needs of beneficiaries.
Meanwhile, devaluations in South American countries and a slower economic recovery have encouraged sending remittances to support families in this sub-region.
In Central American countries, remittances will grow by 6.6 percent, reaching $45.7 billion.
In contrast, the South American region will see a 9.1 percent growth in remittance income, totaling US$31.7 billion.
The report also provides a detailed analysis of the profiles and behaviors of remittance senders and recipients. Although amounts sent vary by nationality, gender, and years of residence abroad, remittance amounts range from US$131 to US$648 monthly, representing between six and 23 percent of migrants’ incomes.
More than half of migrants report sending money to their mothers, and one in three sends money to their fathers.
Among men, the median remittance sent is US$300 monthly and this amount remains stable during the first 15 years, decreasing as a percentage of income as it begins to grow. For women, the rate of income allocated to remittances remains stable over time, leading to increased amounts sent over the years.
Finally, surveys reflect the role of remittances in ensuring the standard of living for families in the countries of origin.
The IDB said 80 percent of migrants indicate that the money is used for maintenance, including daily food, housing, and transportation expenses. The second most common use is for medical expenses. Other purposes mentioned by more than half of respondents include education, savings, business, and real estate. CMC
