The year 2021 set a new record for immigrant remittances to Latin America, with a 26% growth and a total amount of US$128 billion. growth of 26% and a total amount of US$128 billion. For many Latin American countries, remittances are one of their main sources of foreign exchange income, including Mexicoa major exporter of manufactured goods, where remittances reached US$51.586 billion.

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

The increase in remittances, says the IDB, was the result of the U.S. federal government's supportive policies during the pandemic, as well as an improvement in the demand for labor in the United States, where most Latin American and Caribbean emigrants reside.The increase in remittances, says the IDB, was the result of the U.S. federal government's supportive policies during the pandemic, as well as an improvement in the demand for labor in the United States, where most Latin American and Caribbean emigrants reside.

Source: IDB