Kingstown, St. Vincent — Vincentians abroad are sending less money home, but the local economy is holding steady thanks to historically low unemployment rates, says Minister of Finance Camillo Gonsalves.
Speaking on WE FM on Sunday, Gonsalves said the drop in remittances appears to be linked to recent U.S. immigration crackdowns, but this is being offset by strong domestic employment and business performance.
“There are more people employed in St. Vincent and the Grenadines today than at any point in the history of St. Vincent and the Grenadines since slavery,” the finance minister declared.
Gonsalves said unemployment is now in the high single digits and suggested that an additional small percentage of people are choosing not to work, rather than being unable to find jobs.
Although the government’s most recent confirmed unemployment data is from 2022, showing a 10.8% rate, Gonsalves said that figure predates the full operation of the Sandals Resort and other large construction projects. He believes the current jobless rate is “certainly in single digits” under the standard definition — those actively seeking work but unemployed.
While praising domestic economic growth and reporting improved business performance from the Chamber of Industry and Commerce, Gonsalves acknowledged a concerning dip in remittances.
“Our working theory right now is it is because of the United States’ current crackdown on migrants,” he explained. “ICE is essentially camped out outside of these Western Unions and these MoneyGram offices,” particularly in metropolitan areas with large Vincentian populations.
He said that while ICE’s focus appears to be on Latin Americans, Vincentians—both undocumented and legal residents—have been spooked by the increased enforcement presence.
“There are people who are actually fully regularised, but this thing has been a very scary experience for everybody,” he said.
According to Gonsalves, the data indicates the decline isn’t necessarily in the amount of money sent per person, but rather in the number of people sending funds. He emphasized that remittances are vital to many households in SVG.
“I hope it’s a temporary downward blip,” he said. “But while remittances have been down recently, employment has been up. So people have a job, more people have a little bit more money in their pocket, and I think that is also being reflected in some of the consumer numbers that we’re seeing.”
