Remittances to Latin America and the Caribbean in 2010: Stabilization after the Crisis

This document analyzes remittance flows to the Latin America and the Caribbean (LAC) region.

Since the onset of the crisis in late 2008, rising unemployment rates and falling income levels among migrants in traditional host countries had resulted in declines in the amount of remittances sent home. Although the downward trend persisted through the first months of 2010, remittances to LAC showed signs of positive growth starting in May.

The document states that in 2010, remittance flows to the LAC marked the end of the downward trend brought on by the 2008-2009 global financial and economic crisis. Findings include:

• Overall regional volume of remittances sent home reached levels similar to 2009 with a slight increase of 0.2 percent;
• Higher inflation rates and stronger local currencies in many countries resulted in an -8.7 percent drop in the value of these remittances, once received;
• Pace of growth of remittances in the future will depend on the economic growth of the host countries;
• Improved outlook in employment rates in the migrant labor market may improve earning capacity of LAC migrants living and working in host countries.