The domino effect of remittances

For many Central American Immigrants the American soil is fading and its economic origins beginning to suffer.

Monday, November 3, 2008

The adjustment in the family economy has begun to extend to to most of the Dominican and Latin American families that live in the US, even though it affects those from Central American and the Caribbean in particular; those countries are the ones that depend most on remittances sent by its citizens from the US.

According to the Multilateral Investment Fund (Fomin) of the IDB and the central banks in respective countries, remittances from the US to Central America represent 1.6% of the GDP in Panama, 20% in Honduras (the highest in all of Latin America), 2.1% in Costa Rica and 7.1% in the Dominican Republic.

More on this topic

Guatemala: Real value of remittances drops

October 2008

The economic crisis in the US, combined with inflation and the value of the quetzal, is affecting a million homes that living off remittances.

Up to 27 September, the Bank of Guatemala reported that income from family remittances was $3.2 billion, an increase of only 6.4% in comparison to the same period in 2007 when the total was $3.05 billion at an increase of 14.2%; in 2006 remittance grew by 23%.

Transparency in Price of Remittances

February 2012

A website will allow senders to compare the costs of their remittances from the U.S. to Central America, encouraging competition between providers of such services.

The Center for Latin American Monetary Studies (CEMLA), the Multilateral Investment Fund (MIF), a member of the Interamerican Development Bank (IDB) and World Bank today (Thursday 2 February) launched, a free online tool that can be used to compare and make transparent the costs of remittances from the United States to six Central American countries and the Dominican Republic.

IDB sees remittances to Latin America declining in 2009

March 2009

Fourth quarter of 2008 registers first decline in nearly a decade. Flows of money sent home by migrants hit by economic slowdown, exchange rate swings

After almost a decade of growth, remittances to Latin America and the Caribbean are likely to decline in 2009 for the first time since the Inter-American Development Bank started tracking these flows in the year 2000. Remittances have been decreasing since late 2008.

Remittances in Nicaragua's Economy

April 2012

In 2011, remittances reached $1.053 billion according to the IDB, accounting for 18% of GDP, 20% coming from Costa Rica, and the rest mainly from the U.S.

The figure comes from a study entitled ‘Remittances South-South - The Importance of the Costa Rica-Nicaragua Corridor’, by the Multilateral Investment Fund of the Inter-American Development Bank (MIF-IDB).

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