Remittances Rebound in Latin American Countries

A sharp decline in global remittances was reported during the first few months of the COVID-19 pandemic, as migrants in foreign countries across the world sent significantly less payments back to family in their home country. Now, data shows remittances in several Latin American countries are quickly rebounding.

In new data collected by Pew Research Center, countries like Mexico, Colombia and Guatemala are once again receiving more remittances in 2020 than during the same time in 2019. Mexico saw an 11 percent increase in remittances for June, while the Dominican Republican saw a surge of 26 percent for the same month. Many of these countries experienced double-digit declines in remittances for April and May, with El Salvador dropping by 40 percent in April.

A bulk of the remittances being sent back to these countries are originating from the U.S., where a return in jobs is allowing the world’s largest population of immigrants to continue earning and sending money back home. Remittances contribute to a substantial influx of money for many Latin American countries, with Mexico receiving nearly $20 billion in just the months between January and June of this year.

Still, while Mexico and other Latin American countries are showing signs of a recovery, remittances are still well below 2019 levels in much of Latin America and the world. Analysts still project a double-digit percentage decline in global remittances for the year even if reopening measures continue.