World Bank; “Latin America and the Caribbean remittances are showing a 21.6% increase.” (Nicaragua is up 16% Year to Date)
Nicaragua
Last time we checked in, the year to date remittances for Nicaragua (money sent home by family members living and working abroad) was an accumulated US $1.381 billion. (January to August).
The forecast for the remainder of 2021 was for about US $700 million to come in during September to December which would make 2021 another record year.
Latest (Y.T.D. January to September)
The US $176 million sent home in September 2021 was above the 8 month average of US $172,625,000 which is required to record a record breaking year end figure of more than US $2 billion.
With the September numbers now in, the year date figure is showing as US $ 1.557 billion which is 16% higher than the same period last year.
Y.T.D. remittances from the United States are US $981 million dollars, Spain was US$227, Costa Rica US $196 million and Panama US $52.4 million.
The Rest of the World
According to a BNN Bloomberg (a Bell Media business and financial news site) report based on figures from the World Bank, the global record breaking remittances “are being fueled by Latin America countries” (such as Nicaragua).
They note that while remittances to low and middle income countries are forecast to grow 7.3% in 2021, Latin America and the Caribbean is showing a 21.6% increase.
Factors that the World Bank considers are contributing to the increases include; the improvement in the American economy and a jump in the number of migrants traveling to the U.S.
Trivia: In 2020, the U.S. was the largest source country for remittances, followed by the United Arab Emirates, Saudi Arabia, and Switzerland. (World Bank)
Other regions likely to maintain an increase in remittance income are; the Middle East and North Africa 9.7%, South Asia 8%, sub-Saharan Africa 6.2%, Europe and Central Asia 5.3%, with East Asia and the Pacific down by 4%.
The World Bank notes how important the remittances have been to during the Covid-19 crisis. Michal Rutkowski, the World Bank’s Global Director for Social Protection and Jobs, said in a statement; “Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic.”
Cash Transfer Fees
Also of note from the World Bank report was the cost of sending the money home. The average cost to send money across international borders averaged 6.4% in the first quarter of 2021 (more than double the WB desired amount of 3%) with sub-Saharan Africa the most expensive, reporting an average cost of 8%.
