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  • Writer's pictureJaime González Gasque

Mexico and Guatemala continue to be the main recipients of remittances in Latin America

Updated: Nov 17, 2023

In recent years, remittances have become a strengthened modality, especially with the rise of different social situations that have triggered migratory movements, because in this way, through remittances, migrant workers have the possibility of supporting financially to their families.

Within this type of movements, more and more record numbers are being recorded, and also in the use of digital applications to carry out these transactions. According to a report presented by Visa under the title: 'Money travels: adoption of digital remittances 2023', so-called digital remittances have become the most popular way to send money internationally, along with attendance at physical branches with 34 %, sending postal checks with 12% or sending it with another person traveling to the destination country with 11%, as explained by Rubén Salazar, global leader of Visa Direct.

“This new research study shows an incredible acceleration of digital payments, but there is still more to do by the industry so that simplified remittances can be within the reach of more migrant workers and their families who depend on these vital payments to make everything, from paying for food and education or even unforeseen medical expenses,” Salazar said.

Mexico and Guatemala continued to be the main recipients of remittances during 2022, with 58.4 billion and 18.0 billion dollars, respectively, and growth in both cases of double digits year by year, according to a report from the digital payments platform WorldRemit.

Mexico has long been the main recipient of remittances on the continent and the second in the world, after India and followed by China, according to the report on the occasion of the International Day of Family Remittances, next June 16.

It also indicates that the Dominican Republic ranked third among Latin Americans, with 9.8 billion dollars, although it had a slight decrease compared to 2021, when the figure was 10.403 million dollars.

Brazil, Guatemala and Honduras registered the highest percentage growth in total remittances from 2021 to 2022, with this growth exceeding 15% in all three cases, according to the company.

Flows to Latin America and the Caribbean reached $142 billion last year, which represents an increase of 11.6% compared to 2021. Most monetary transfers arrive from the United States, Spain and Canada, in this order .

"Remittance flows in the region continue to exhibit a resilient, rising trajectory, with several countries within the top 10 reporting record remittance flows despite the challenging economic climate and rising inflation," Jorge Godínez said in a statement. Reyes, director for the Americas of WorldRemit.

Latin America and the Caribbean is projected to be the leading region in receiving remittances this year, with an estimated growth rate of 4.7%.

According to the company, technology has played a key role in driving the record number of remittances recorded in Latin America in recent years and highlights that the number of people using it for bank transfers increased from 8% to 16% among 2016 and 2021.

In Latin America alone, the digital remittance market is expected to have a value of 2,450 million by 2027.

By Newsroom Infobae

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