Family remittances support Nicaraguan economy

Western Union office. Photo file

By La Prensa

HAVANA TIMES – As of August of this year, remittances to Nicaragua totaled $ 1.381 billion. Of these, 866.1 million came from the United States, an amount that provides significant support to the Nicaraguan economy, according to data from the Central Bank of Nicaragua.

The amount received up to August of this year is 16.5% higher than the same period in 2020 ($ 1.186 billion).

Most of Nicaragua’s remittances from other countries are also increasing, but only the United States reports a 22% increase.

Last year, through August, $ 709.5 million came from the United States, where the largest community of Nicaraguan migrants is located. This year, the amount to date is an additional $ 156 million sent from the United States. Remittances boost domestic consumption and, consequently, the growth of the economy which the Central Bank of Nicaragua estimates this year at 7%, based on the activity incurred in 2020.

In August alone, $ 174.8 million arrived from the United States, more than in the same month last year. But it was in March that the highest amount for 2021 was reached at $ 190.7 million.

Nicaraguans have benefited from the economic recovery in the United States after being hit hard in 2020 by the impact of the pandemic. However, the spread of the delta variant of covid has created a kind of pessimism among US economists who have already reduced expansion projections for this year.

In an update to its forecast, the National Association of Business Economists lowered its growth forecast from about 6.7% to 5.6% in 2021. But it increased the forecast for 2022, which went from 2 , 8% initially to 3.5%.

Spain is another country with significant growth in remittances sent to Nicaragua, with $ 203.6 million sent through August of this year, exceeding $ 169.8 million for the same period of the year. last. This represents an increase of an additional $ 33.8 million, a growth of 19.9%.

In third place are the Nicaraguans of Costa Rica, who sent 175.5 million dollars, or just under 179.1 million last year at the same date. The Costa Rican economy has been hit hard by the pandemic, which has resulted in increased unemployment.

The Nicaraguan emigrant community living in Panama sent $ 47.1 million through August, more than the $ 46.6 million sent during the same period last year.

The other countries from which the remittances come are: Canada with 19.7 million dollars, Mexico, 4 million dollars, El Salvador, 8.3 million dollars, and the rest of the world, 57.3 million dollars. million dollars, according to official figures.

Learn more about Nicaragua here on Havana Times.

About Matthew Berkey

Check Also

Countries that pay the highest starting salary for secondary school teachers

According to data from the World Bank and the Learning Police Institute, teachers are paid …

Leave a Reply

Your email address will not be published. Required fields are marked *