A USD 19 Billion Shot In The Arm For The Caribbean

remittance
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By NAN Staff Writer

News Americas, NEW YORK, NY, Fri. Nov. 18, 2021: Caribbean immigrants are set to give the region of their birth a USD 19 million shot in the arm in remittance inflows according to just released data from the World Bank. The total amount reported and tallied by News Americas for the Caribbean region alone could surpass a whopping USD 19 billion.

The Dominican Republic leads the way and is set to receive US $10.46 billion this year, a rise from USD 8.3 billion last year.

Jamaica came in second on the list and is projected to receive USD 3.5 billion this year, a rise from 3 billion last year.

Haiti is set to receive USD 3.11 billion this year, the same as last year and the third highest for any regional country.

In the 4th spot interestingly is Bermuda, with USD 1.5 billion.

Here’s where the other Caribbean nations stack up according to a News Americas review of the World Bank data.

Guyana – USD 393 million

Trinidad and Tobago – USD 178 million

Suriname – USD 170 million

Belize – USD 140 million

Curacao – USD 124 million

Barbados – USD 108 million

Dominica – USD 52 million

Grenada- USD 48 million

Aruba – USD 38 million

St. Kitts & Nevis – USD 26 million

Antigua & Barbuda – USD 25 million

St. Lucia – USD 25 million

Cayman Islands – USD 14 million

Turks & Caicos – USD 7 million


AMERICAS

Remittance flows into Latin America and the Caribbeanwill likely reach a new high of $126 billion in 2021, registering a solid advance of 21.6 percent compared to 2020. Mexico, the region’s largest remittance recipient, received 42 percent ($52.7 billion) of the regional total. The value of remittances as a share of GDP exceeds 20 percent for several smaller economies: El Salvador (26.2 percent), Honduras (26.6 percent), Jamaica, (23.6 percent), and Guatemala (18 percent). The adverse effects of COVID-19 and Hurricanes Grace and Ida contributed to higher remittance flows to Mexico and Central America. Other main drivers include recovery in employment levels and fiscal and social assistance programs in hosting countries, particularly the United States. An increase in the number of transit migrants in Mexico and other countries, and the remittances they received from overseas to support their living and travel costs, appears to be a significant factor behind the strong increase. In 2022, remittances are expected to grow at 4.4 percent, mainly due to a weaker growth outlook for the United States. 

GLOBALLY

Remittances to low- and middle-income countries are projected to have grown a strong 7.3 percent to reach $589 billion in 2021. This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite a severe global recession due to COVID-19, according to estimates from the World Bank’s Migration and Development Brief released Thursday. 

“Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis. Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic,”said Michal Rutkowski, World Bank Global Director for Social Protection and Jobs.  

“The immediate impact of the crisis on remittance flows was very deep. The surprising pace of recovery is welcome news. To keep remittances flowing, especially through digital channels, providing access to bank accounts for migrants and remittance service providers remains a key requirement. Policy responses also must continue to be inclusive of migrants especially in the areas of access to vaccines and protection from underpayment,”added Dilip Ratha, lead author of the Brief and head of KNOMAD.  

Remittances are projected to continue to grow by 2.6 percent in 2022 in line with global macroeconomic forecasts. A resurgence of COVID-19 cases and reimposition of mobility restrictions poses the biggest downside risk to the outlook for global growth, employment and remittance flows to developing countries. The rollback of fiscal stimulus and employment-support programs, as economies recover, may also dampen remittance flows.