Latin America remittances growth will slow in 2022-23

Significance

Migrants from LAC sent home a record amount of money in 2021 as the employment situation improved for many of them in the United States, where the great majority live. Double-digit increases in remittance inflows were recorded in many LAC countries, and Mexico experienced growth in inflows of above 20%.

Impacts

• Several countries in LAC will receive more remittances than foreign direct investment in 2022 and 2023.
• Continued growth in money transfers will boost consumption in much of the region.
• The average cost of sending money to LAC is likely to remain above the goal set by the UN for some years.