Latin America remittances will rise despite obstacles

Subject

Remittances to Latin America.

Significance

Family remittances to Latin America and the Caribbean (LAC) totalled 80 billion dollars in 2017, up from 74 billion in 2016. The record amount was mainly due to a robust economy and increasing employment opportunities in the United States.

Impacts

• The US economy will again drive remittances growth this year, but immigration crackdowns could create downside risks.
• The slow reduction in sending costs will limit the development impact of remittances in LAC and other developing nations.
• So-called de-risking and regulatory burdens are high obstacles to remittances growth.