Countries in Latin America and the Caribbean (LAC) received more than US$142 billion in remittances in the first nine months of 2022, up nine per cent from a year earlier.

In a new report, the World Bank is pointing to increasing employment of Latino migrants in the United States, which has contributed to the rising wave of remittances to the region. Remittances from migrants in transit contributed solid flows towards Mexico and Central American countries.

Nicaragua saw a record 45 per cent increase, providing a huge sigh of relief for President, Daniel Ortega, whose regime is facing isolation internationally due to its crackdown on political opponents. Data for the first nine months of 2022 shows an increase of 20 per cent for Guatemala, 15 per cent for Mexico and nine per cent for Colombia.

Remittances are an important source income in many Latin American households. Studies show that they help recipient families cushion economic hardship created by decades of drug violence and corrupt regimes.

For some Latin American and Caribbean countries (like El Salvador, Honduras Jamaica and Haiti), remittances account for over 20 per cent of their fross domestic product.

Financial aid of this kind also contributes to reducing poverty, improving the nutritional situation and the rise of school enrollment rates.

In 2023, remittance growth is expected to slow to 4.7 per cent amid weak economic prospects for the United States, Italy, and Spain.