Research Briefing | Nov 1, 2021

Remittances cushioned Covid hit and boosted recovery for Latin America

Remittances-cushioned-Covid-hit-and-boosted-recovery-first-page

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.
Back to Resource Hub

Related Services

Post

Mexico: Election results are unlikely to alter growth prospects

We will retain our below-consensus 2024 GDP growth forecast of 1.9% for Mexico irrespective of the presidential election results on June 2, and continue to project a 2% expansion in 2025. Loss of momentum in Q4, weak activity in January, and base effects have set the course for this year.

Find Out More

Post

On the trail of Banxico’s reaction function

Our analysis of Banxico's reaction function reaffirms our forecast that the policy rate will end the year at 8.25% – 1.25ppts lower than the consensus expectation of 9.50%. We expect larger rate cuts in Q4 2024, once inflation falls within the target range.

Find Out More