Latin American Remittances Hit Record High in 2023: IDB

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By LatAm Reports Editor

Latin American countries are on track to receive an unprecedented amount of remittances in 2023, with projections indicating a total of $155 billion if current trends persist. This estimate, detailed in a recent report by the Inter-American Development Bank, marks a 9.5% increase from the $142 billion received in 2022 and represents the 15th consecutive year of growth in remittance inflows to the region.

The consistent rise in remittances over the years mirrors the evolving migration patterns within the region and underscores the significant contributions migrants make to their home countries. Although there was a moderate increase in remittance flows between 2017 and 2019, the trend saw a substantial spike in 2021 with a 26.7% growth during the COVID-19 pandemic. Over the past decade, Latin America and the Caribbean have experienced an average annual growth of approximately 10% in remittance inflows.

The surge in remittances in 2023 can be primarily attributed to notable increases in several areas. Central American countries have witnessed a 13.2% growth, while Mexico and South American nations have seen rises of 9.8% and 7.9%, respectively. In contrast, Caribbean countries have experienced a more moderate growth of 2.6% this year.

This significant uptick in remittances is linked to the improved earnings of migrants, who have seen better employment rates. Additionally, the progression of migration trends in previous years has facilitated increased remittance flows to families in their countries of origin.