NEW YORK (Reuters) — Money shipped to the Caribbean and Latin America as remittances could hit a record $156 billion this year, a 9.5% jump from the previous record, according to estimates released on Thursday by the Inter-American Development Bank (IDB).
“Remittances to Latin American and Caribbean countries have shown sustained growth of around 10% annually for the past 10 years,” said the IDB in a report highlighting the contribution that migrants make to their countries of origin.
Greater cash amounts sent to Mexico and Central America account for most of the increase, even as forecasts show a deceleration in the pace of growth for both compared to 2022.
Remittances to Mexico are estimated to rise 9.8% this year compared with 13.4% last year. Central America could see an increase of 13.2% in 2023 after a 15.7% rise the previous year.
Remittances to South America are seen rising 7.9% after growing at a 10.2% rate last year.
The Caribbean countries, where growth this year is estimated at 2.6% versus a contraction of 5.3% last year, are the sole region that saw an improvement from last year.
The study estimates the average weekly salary for workers from Latin America and the Caribbean in the United States will rise 3.9% this year to $860.
Almost $6 of every $10 sent back home come from North America, the IDB report showed, citing 2020 data. More than a fourth of the total comes from within the Latam and Caribbean region, and almost 13% come from Europe.
Out of every $10 sent, about $4 lands in Mexico, just under $3 goes to Central America, almost $2 goes to South America and about $1 to the Caribbean, according to estimates in the report.