August 27, 2009
The remittances sent by Latin American and Caribbean migrants to their countries of origin are expected to drop 11 percent in 2009, said a recent survey by the Inter-American Development Bank (IDB).
IDB said that cash remittances are expected to reach 62 billion U.S. dollars this year, down 11 percent from those of last year, reflecting the impact of the global economic crisis on migrants, most of them living in industrialized countries hit by recessions, such as the United States, Spain and Japan.
"The crisis is clearly limiting migrants' capacity to send money to their countries of origin," said IDB President Luis Alberto Moreno. "Nevertheless, remittances have decreased less than other private financial flows to the region, as migrants continue to make sacrifices to aid their families."
The report said that even people who have lost their jobs are still sending money back home, usually using their savings.
The report was based on data from a survey carried out between March and June on 1,350 Latin American and Caribbean migrants, combined with desk research and statistical analysis of migration and unemployment.
Remittances from the U.S. are likely to drop by 11 percent to 42.3 billion dollars this year, while those from Europe are expected to decrease by 14 percent to about 9 billion dollars.
Remittances from other countries are expected to drop by 4.5 percent to 10.4 billion dollars.
According to the survey, migrants to the U.S. sent remittances with less frequency and in smaller amounts than in 2008.
In 2008, migrants averagely made 15 transfers back home while the number is expected to drop to 12 this year. The average amount sent per transfer is expected to slip from 241 dollars to 230 dollars.
About 45 percent of the respondents said that they cut the amount of money they send home, while more than one third of them have reduced their daily expenses, and one fifth have a second job.
The decline could affect more than 4 million people in Latin America and the Caribbean, almost one third of them in Mexico, the largest recipient of remittances in the region.