Remittances: Guatemala Accounts for 32% of Shipments to the Region

During 2018, family remittances to Central American countries and the Dominican Republic totaled $28.670 million, of which $9.288 million went to Guatemala.

Friday, March 1, 2019

In 2018, family remittances to Central America and the Dominican Republic (CARD) grew 11%, showing a slight slowdown with respect to what was observed in 2017 (12.0%). This slight slowdown was observed in all countries except Honduras, explained the Economic Commission for Latin America (ECLAC).

The report states that "... Of the total flow of remittances to the region, Guatemala (32.1% of the total) receives the largest share, followed by the Dominican Republic (22.8%) and El Salvador (19.1%). However, the migratory presence in the United States is favorable, in terms of total population, to the latter (30%), followed by the Dominican Republic (25%) and finally from Guatemala (21%).

Remittances as a percentage of GDP make a particularly significant contribution in four CARD economies: 22.2% in El Salvador, 20.3% in Honduras, 11.8% in Guatemala and 10.3% in Nicaragua. As a percentage of exports (on average 44% in CARD), they are outstanding in El Salvador (116.3%), Guatemala (82.0%) and the Dominican Republic (59.8%); but in all cases in proportions less than the previous year. As a significant source of foreign exchange, they continue to contribute not only to the equilibrium of the current account but also to contain fluctuations in the exchange market.

The ratio of remittances as a percentage of imports (on average 26.9% for CARD) decreased for all countries except Nicaragua. The value of this indicator in 2018 was particularly significant in El Salvador (52.9%), Guatemala (50.3%) and Honduras (40.6In addition, a considerable percentage of imports are financed through remittances, and there may eventually be tendencies in the consumption patterns of remittance beneficiaries that tend to foster a dynamic propensity for greater imports."

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