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A new report from the Inter-American Development Bank (IDB) projects that remittances to Latin American and Caribbean countries will set a record in 2024, despite having the lowest growth in recent years. If current trends continue, the countries of the region will receive US$161 billion in remittances in 2024, a 5% increase over 2023.
The estimated slowdown for this year is due to lower labor mobility in 2023 and lower labor market growth for migrants abroad, accompanied by a relative improvement in the economies of recipient countries in Central America and Mexico, which reduces the needs of beneficiaries.
The main destination country for remittances in the region is Mexico, which will receive US$65 billion this year, although with an increase of 2.9% over 2023, the lowest in the last 10 years. In Central American countries, remittances will grow 6.6%, reaching US$45.7 billion.
The South American region, by contrast, will see a 9.1% growth in remittance inflows, totaling US$31.7 billion. Finally, the Caribbean countries will receive US$18 billion with a 2% growth, similar to that observed in 2023.
This new IDB report provides a detailed analysis of the profiles of remittance senders and recipients. Although remittances vary according to nationality, gender and years spent abroad, the amounts sent vary between US$131 and US$648 per month, and represent between 6% and 23% of migrants’ income. More than half of migrant’s report sending money to their mother and one in three to their father.
Among men, the median amount of remittances sent is US$300 per month and remains stable during the first 15 years, decreasing as a percentage of income as income begins to grow. Among women, the percentage of income going to remittances remains stable over time, so the amounts sent increase over the years.
Finally, the surveys reflect the role of remittances in ensuring the standard of living of families in the countries of origin. 80% of migrants mention that the money is used for living expenses, which include daily expenses for food, housing, and transportation. The second use corresponds to medical expenses. Other items mentioned by more than half of the respondents include education, savings, business and real estate.
