LATIN AMERICA / CARIBBEAN – A new report from the Inter-American Development Bank (IDB) projects that remittances to countries in Latin America and the Caribbean will reach a historic high in 2024 despite growing at their slowest pace in ten years and returning to levels of increase prior to the exceptional growth they showed during the COVID-19 pandemic. If the trend continues, the region will receive $161 billion in remittances in 2024, a 5 percent increase compared to 2023.
The estimated slowdown for this year is attributed to the combination of a lower human mobility in 2023 with a slower labor market growth for migrants abroad, coupled with a relative improvement in the economies of Central American and Mexican recipient countries, which reduces the needs of beneficiaries.
Meanwhile, devaluations in South American countries and a slower economic recovery have encouraged sending remittances to support families in this subregion.
The region’s leading recipient country for remittances is Mexico, which will receive $65 billion this year, a 2.9 percent increase compared to 2023, the lowest in the last 10 years. In Central American countries, remittances will grow by 6.6 percent, reaching $45.7 billion.
In contrast, the South American region will see a 9.1 percent growth in remittance income, totaling $31.7 billion. Finally, Caribbean countries will receive $18.4 billion, with a 2 percent growth, similar to that observed in 2023.
Destination and use of remittances
The report also provides a detailed analysis of the profiles and behaviors of remittance senders and recipients. Although amounts sent vary by nationality, gender, and years of residence abroad, remittance amounts range from $131 to $648 monthly, representing between 6 percent and 23 percent of migrants’ incomes. More than half of migrants report sending money to their mothers, and one in three sends money to their fathers.
Among men, the median remittance sent is $300 monthly and this amount remains stable during the first 15 years, decreasing as a percentage of income as it begins to grow. For women, the rate of income allocated to remittances remains stable over time, leading to increased amounts sent over the years.
Finally, surveys reflect the role of remittances in ensuring the standard of living for families in the countries of origin. 80 percent of migrants indicate that the money is used for maintenance, including daily food, housing, and transportation expenses. The second most common use is for medical expenses. Other purposes mentioned by more than half of respondents include education, savings, business, and real estate.
To access the remittances data, visit DATAMig.
