Remittances cushioned Covid hit and boosted recovery for Latin America

Remittances are an important source of income for families in Central America and the Caribbean, funding more than 20% of total household consumption in several countries. During 2020, Latin America and the Caribbean was the only region to enjoy an increase in workers’ remittances.

What you will learn:

• We forecast remittances to Latin America and the Caribbean will reach a new record high in 2021, after a bumper year in 2020.
• Strong remittances helped cushion the impact of severe lockdowns and the absence of tourism revenues during the peak of the pandemic, topping up household incomes in countries where fiscal support was fainthearted.
• We see remittance growth moderating as economic conditions in home countries improve and the region becomes less dependent on transfers to keep the economy alive.