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

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.

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