Remittance To Caribbean, Latin America See Some Decline

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News Americas, WASHINGTON, D.C., Fri. Oct. 4, 2013: Remittance to Latin America and the Caribbean has shown a decline, according to the World Bank.

A World Bank Migration and Development Brief shows that remittance flows to Mexico are expected to decline by 2.8 percent in 2013. Jamaica registered a decline of 1 percent while Dominican Republic kept flat in the first quarter.

However overall, flows to Latin America and the Caribbean (LAC) are expected to reach $61 billion by the end of this 2013, with much of this growth forecast pegged on prospects for the rebound of US economy.

Latin America and the Caribbean receives over three-quarters of its remittances from the United States, and is thus susceptible to the U.S. economic cycle.

Worldwide, however, growth of remittances has been robust in all regions.

The World Bank found that globally, remittance flows may reach $550 billion in 2013 and over $700 billion by 2016.

Remittance flows to developing countries are expected to reach $414 billion in 2013 (up 6.3 percent over 2012), and $540 billion by 2016.

The Bank also found that the global average cost for sending remittances remains broadly unchanged at just under 9 percent. However, there are anecdotal reports that many banks are imposing additional fees on beneficiaries receiving remittances. Also, it was found that some international banks are closing the bank accounts of money transfer operators because of money laundering and terrorism financing concerns.

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