The transfer is flowing Latin America and the Caribbean according to the report of World Bankwhich attributes this increase to the strong recovery in foreign worker employment in the United States.
And she states that among the countries with double-digit growth rates, Guatemala (35%), Ecuador (31%)Honduras (29%), Mexico (25%), El Salvador (26%), Dominican Republic (26%), Colombia (24%), Haiti (21%) and Nicaragua (16%).
In Ecuador, remittances from migrants reached $4,362 million in 2021, a record number that surpassed remittances received in 2020 and 2019 by more than $1,000 million.
Migrant remittances hit a record $4,362 million in 2021
Recorded flows into Mexico include funds received by migrants in transit from Honduras, El Salvador, Guatemala, Haiti, Venezuela, Cuba and other countries.
“In 2022, remittances in the region are estimated to grow by 9.1%, although the risk of deterioration remains,” forecasts the World Bank.
Globally, officially recorded remittance flows to low- and middle-income countries are forecast to grow 4.2% this year to $630 billion, with unprecedented flows to Ukraine. But economies dependent on flows from Russia will see significant declines.
This follows a record-breaking 8.6% recovery in 2021, according to the latest edition of the Migration and Development Review.
57% of households are applying for loans from family and friends to deal with the impact of the pandemic in Ecuador
For Ukraine, the largest recipient in Europe and Central Asia, remittances are estimated to grow by more than 20% in 2022. However, remittance flows to many Central Asian countries, the main source of which is Russia, will fall drastically. Are Decreases combined with rising food, fertilizer and oil prices can increase food security risks and exacerbate poverty in many of these countrieswarns the international organization.
“The Russian invasion of Ukraine has unleashed a large-scale humanitarian, migration and refugee crisis and created risks for a global economy still grappling with the effects of the COVID-19 pandemic,” it said. Michal Rutkowski, Global Director of Social Protection and Labor Global Practice at the World Bank. “The number one priority to protect people from the threat of food insecurity and rising poverty is to promote social protection programs aimed at protecting the most vulnerable, such as Ukrainians and Central Asian families, as well as populations affected by the economic impact of the pandemic war” .
Where is there more and less poverty in Ecuador?
In 2021, remittance flows saw significant increases in Latin America and the Caribbean (25.3%), Sub-Saharan Africa (14.1%), Europe and Central Asia (7.8%), the Middle East and North Africa (7.6%) and South Asia (6.9%). Remittances to East Asia and the Pacific fell 3.3%; however, excluding China, they were up 2.5%. With the exception of China, remittance flows have been the main source of external financing for low- and middle-income countries since 2015.
The five countries that received the most remittances in 2021 were India, Mexico, China, the Philippines and Egypt. Economies where remittance flows account for a large percentage of GDP include Lebanon (54%), Tajikistan (34%), the Kyrgyz Republic (33%) and Samoa (32%). (I)