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Published on Friday, January 24, 2025

Colombia | Remittances Matter, and They Matter a Lot for Latin America

Summary

Remittances sent by Latin Americans from abroad are becoming more significant, accounting for 2.3% of the GDP of Latin America and the Caribbean. In 2024, these flows reached $160.9 billion, increasing $7.7 billion compared to 2023. Remittances affect the well-being of their recipients and reflect migration dynamics.

Key points

  • Key points:
  • In countries such as El Salvador, Guatemala, Nicaragua, and Honduras, remittances are significant, accounting for between 19% and 26% of GDP.
  • Remittances are primarily used to improve the well-being of recipient households, covering basic expenses, and to a lesser extent, for savings or debt repayment.
  • Understanding the flow of remittances is crucial for promoting consumption and savings patterns and ensuring that these incomes generate greater impacts on the living conditions of recipients.

Geographies

Documents and files

Press article (PDF)

20250124-Columna-Remesas-JTellez-.pdf

Spanish - January 24, 2025

Audio (MP4)

Audio-BBVA-research-24-Ene.mp4

Spanish - January 24, 2025

Authors

JT
Juana Téllez BBVA Research - Chief Economist
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