Remesas – Remittances to Nicaragua Top US $1.85 Billion

With the December 2020 numbers now in, statistics from the Central Bank of Bank of Nicaragua (Banco Central de Nicaragua or BCN by its acronym) show that a total of US $ 1.85 Billion (US $1,851.4 million) came into Nicaragua in 2020 as family remesas – remittances. That represents a 10% increase over 2019 when the BCN statistics show that US $ 1.68 Billion (US $1,682.4 million) was sent home.

The 2020 remittances represented a staggering 14.8% of the country’s Gross Domestic Product (GDP).

The number for the holiday season month of December 2020 was US $190.9 million and was naturally larger than the monthly average of 154.28 million dollars for the year and also represented a 15% increase over December 2019.

Twenty percent (20%) is the generally accepted figure when looking at how many of the population of Nicaragua (6.5 million) live abroad. Given the total remittances were US $ 1.85 Billion, that means the equivalent of an average $1,425 per year was sent back to Nicaragua for every man, woman and child that makes up the 1.3 million living abroad.

As is usual, the United States of America topped the leaderboard in total monies sent home to Nicaragua with US $1.1 billion ($1,111.2 million). Spain and Costa Rica were almost tied for second place but Nicaraguans in Spain sent back 271.5 million dollars or 14.7% of the total while 270.1 million dollars (14.6%) came from Costa Rica. Much further back are Panama with 71.6 million dollars (3.9%) and Canada 23.6 million dollars (1.3%).

Year on Year percentage increases by country show remittances from the United States were up 19.4%, Spain up 24.9% and Canada by 32.6%. Meanwhile and with COVID and border closures having a negative effect on the ability of transient workers to keep gainfully employed, those in Panama and Costa Rica sent back 17.6% and 11.9% less respectively.

However, the bigger picture shows that the trend of increasing remesas – remittances amounts being sent back to Nicaragua will likely continue if the previous 5 years numbers are anything to go by:

Year       US Dollars

2020       1.85 Billion
2019       1.68 Billion
2018       1.50 Billion
2017       1.39 Billion
2016       1.26 Billion

Remittances; usually understood as the money or goods that migrants send back to families and friends in origin countries.

World Bank