Subject
Remittance inflows into Latin America.
Significance
Remittances to Latin America and the Caribbean (LAC) reached a record high in 2014, rising by 5.3% year-on-year. The increase was driven by larger amounts of money sent by migrant workers back to Mexico, Central America and the Caribbean; remittances to South America registered a small decrease compared to the previous year.
Impacts
Remittances growth will depend on economic and labour conditions in host countries, as well as migratory flows.
Stronger remittances growth will have a positive impact on millions of poor families.
Economies where remittances represent a large share of GDP also benefit from increased private consumption.
A faster-growing remittances market offers opportunity for banks and financial institutions to incorporate new clients.