The Inter-American Dialogue predicts that remittances from families will set another record this year, with income exceeding $8.187 billion.
The Washington-based think tank estimates that remittances will increase by 4% compared to $7,855.4 million at the end of 2022. That means Salvadoran households will receive an additional $331 million.
In dollar economies like El Salvador, remittances are one of the main sources of foreign exchange. These incomes primarily support 25% of households and even exceed exports.
A report released by the Inter-American Dialogue on September 9 shows that El Salvador is one of the most remittance-dependent countries in Latin America and the Caribbean. This category ranks alongside Guatemala, Honduras, and Nicaragua.
Remittances reaching households in El Salvador will account for 24.5% of gross domestic product (GDP, production of goods and services) in 2023, lower than last year’s 26.7%. This is explained by the fact that as the size of the economy grows, shipments will increase, but participation in GDP will be adjusted.
One of the most addicted people in LA
El Salvador is the third country in the region with the highest remittances as a percentage of GDP, surpassed only by Nicaragua at 29.1% and Honduras at 28%.
The Central Reserve Bank (BCR) reported that aid shipments from Salvadorans living abroad exceeded $4.711 billion between January and July last year, an increase of 5.6%.
DEM
93.1% of these resources come from the United States, home to more than 2.5 million Salvadorans.
According to Border Patrol (CBP) records, from October 2022 to July 2023 (current fiscal year in the U.S.), 48,868 Salvadorans were detained without documentation at the southern border, including 32,135. were registered in the first seven months of 2023.
It’s almost minimum wage.
Households in El Salvador receive an average of $316.1 per month, which is 86% of the industry minimum wage ($365).
However, the average reaches the highest amount in Chalatenango, at $405.8. It also reached $388.1 in Cabañas and $368.3 in Morazan.
According to a study prepared by BCR in collaboration with the International Organization for Migration (IOM), 94.7% of remittances are for consumption and family maintenance, followed by payments for basic services, medical expenses, and housing maintenance. .
The remaining 9.9% goes to savings, 3.3% to essentials for your business, 1.9% to buying a house, and 0.9% to repaying debt for relocation.
According to the survey, 40.6% of Salvadorans living in the United States consider remittances to be the only source of income for their families in the country.
data
The Inter-American Dialogue details that the countries with the highest remittances as GDP include Nicaragua, Honduras, El Salvador, Guatemala, the Dominican Republic, and Jamaica.
Source: Diario.Elmundo
