Caribbean records increase in remittances

The Inter-American Development Bank (IDB) has projected that Caribbean countries will receive US$18.4 billion in remittances in 2024, marking a modest two percent growth, similar to the rate observed in 2023.

In its latest report, the IDB highlights that while remittance flows to Latin America and the Caribbean are expected to reach a historic high, they are growing at the slowest pace in a decade. Despite this slower growth, the IDB noted that remittances are gradually returning to pre-COVID-19 pandemic growth levels. Overall, the region is forecasted to receive US$161 billion in remittances in 2024, reflecting a five percent increase from the previous year.

The estimated slowdown for 2024 can be attributed to several factors, including reduced human mobility in 2023, slower labor market growth for migrants abroad, and a relative improvement in the economies of Central American and Mexican recipient countries. The report reveals nuanced regional variations in remittance trends. Central American countries are expected to see a 6.6 percent growth, with remittances reaching $45.7 billion. In contrast, the South American region is projected to experience a more significant 9.1 percent growth in remittance income, totaling US$31.7 billion.