The Inter-American Development Bank (IDB) has projected that Caribbean countries will receive US$18.4 billion in remittances in 2024, marking a modest two percent growth, similar to the rate observed in 2023.
In its latest report, the IDB highlights that while remittance flows to Latin America and the Caribbean are expected to reach a historic high, they are growing at the slowest pace in a decade. Despite this slower growth, the IDB noted that remittances are gradually returning to pre-COVID-19 pandemic growth levels. Overall, the region is forecasted to receive US$161 billion in remittances in 2024, reflecting a five percent increase from the previous year.
The estimated slowdown for 2024 can be attributed to several factors, including reduced human mobility in 2023, slower labor market growth for migrants abroad, and a relative improvement in the economies of Central American and Mexican recipient countries.
The report reveals nuanced regional variations in remittance trends. Central American countries are expected to see a 6.6 percent growth, with remittances reaching $45.7 billion. In contrast, the South American region is projected to experience a more significant 9.1 percent growth in remittance income, totaling US$31.7 billion.
The IDB’s comprehensive analysis provides insights into the profiles and behaviors of remittance senders and recipients. Remittance amounts vary by nationality, gender, and years of residence abroad, ranging from US$131 to US$648 monthly. These amounts represent between six and 23 percent of migrants’ incomes.
Interestingly, the study found that more than half of migrants primarily send money to their mothers, with one in three sending funds to their fathers.
Gender differences in remittance patterns are notable: men tend to send a median of US$300 monthly, with this amount remaining stable for the first 15 years, though decreasing as a percentage of income. Women, by contrast, maintain a consistent rate of income allocation to remittances, resulting in increased amounts sent over time.
The report underscores the critical role of remittances in supporting families in their countries of origin. Approximately 80 percent of migrants indicated that the funds are primarily used for essential maintenance, including daily food, housing, and transportation expenses.
Medical expenses emerged as the second most common use, with other significant purposes including education, savings, business investments, and real estate.
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