Brain drain negates remittances in Latin America
Subject The mixed impacts of outward migration. Significance Mexico saw a record inflow of money transfers in May and is set to register another year of fairly strong growth in family remittances in 2017. However, a report from the IMF on the economic impact of migration and remittances shows that while Mexico is benefiting on both fronts, other countries in Latin America and the Caribbean (LAC) are negatively affected. Impacts Increasing remittances will benefit millions of poor Mexican families at a time of sluggish growth and higher interest rates. Economic benefits of remittances will not be fully offset by the losses posed to some Caribbean countries by migrant outflows. The US labour market, and remittance- and immigration-related policy uncertainty, will be key drivers of remittances this year.