The year 2021 set a new record for remittances from immigrants to Latin America, with a 26% increase and a total amount of US$128,000 million. For many Latin American countries, remittances are one of their main sources of foreign exchange, including Mexico, a major exporter of manufactured goods, where remittances reached US$51,586 million.

The growth in per capita remittances received in Latin America and the Caribbean in 2021 was 10 percentage points higher than the growth in per capita GDP in the region, according to the Inter-American Development Bank (IDB), underscoring their importance to the region’s economies. In Mexico, for example, more than 11 million people receive remittances from abroad, which accounted for about 4% of GDP in 2021. In Central America, meanwhile, the US$34,000 million received in remittances in 2021 represents nearly 14% of the GDP of the seven countries

The increase in remittances, according to the IDB, was the result of support policies implemented by the U.S. federal government during the pandemic, as well as an increase in labor demand in that country, where most migrants from Latin America and the Caribbean reside.

Source: IDB