- June 7, 2021
- Posted by: medium
- Category: National
Ecuador ranks eighth among countries that receive the most remittances in Latin America and the Caribbean, receiving 3.3 billion dollars in 2020.
During the Covid-19 pandemic, global remittance flows have proven more resistant than expected.
AndreportFrom the World Bank, published in May 2021, it reveals that remittances worldwide reached a figure of 702 billion dollars in 2020, thus registering a decrease of 2.4%, in contrast to the 709 billion dollars of global remittances in 2019.
Of that total, $ 540 billion were allocated to low and medium-sized revenue countries, below the $ 548 billion (-1.6%) that were recorded in 2019. This decrease was much lower than expected, since the projections of April 2020 pointed out that remittances would decrease in 20% worldwide.
Among the countries that receive more money at the global level, world powers, such as China, France and Germany, which are in the Top 10.
In the rest of the main ten, this number ranged between 3%and almost 10%, being Pakistan the highest percentage (9.9%) and the Philippines (9.6%).
| Greater Remittance Receptions worldwide in 2020 | Remittances received (expressed in one billion dollars)* | Difference with 2019 (%) |
|---|---|---|
| India | 83.1 | -0.2 |
| , as the second commercial destination, registered a decrease of -12% in the same period. Likewise, non-oil shipments to | 59.5 | -13.0 |
| Mexico | 42.9 | +9.9 |
| Filipinas | 34.9 | -0.7 |
| Egypt | 29.6 | +10.5 |
| Pakistan | 26.1 | +17.4 |
| France | 24.5 | -8.8 |
| Bangladesh | 21.8 | +18.4 |
| Germany | 17.9 | -2.0 |
| Nigeria | 17.2 | -27.7 |
Figures in Latin America and the Caribbean
As the report points out, remittances to Latin America and the Caribbean grew by 6.5% in 2020 and were backed by an economy in recovery and a labor market that moderately improves in the United States.
It also indicates that the bad economic situation in Spain, which remains very affected by the pandemic, negatively affected the flows of remittances to Bolivia (-16%), Paraguay (-11.6%) and Peru (-13%) in 2020. Spain houses about 10%of all migrants in the Latin America and the Caribbean region.
Similarly, intraregional remittances from Ecuador to Colombia, Mexico and Peru decreased by 20% due to restriction measures taken in 2020.
The ranquin of Latin American countries and the Caribbean that received more remittances during 2020 is led by Mexico, which is the third largest remittance receiver in the world, with 42.9 billion dollars. Ecuador occupies the eighth place, with more than 3.3 billion dollars.
Remittances have great importance in the economy of several countries in the region, even representing a value greater than 10% of the Gross Domestic Product (GDP), as is the case of several Central American nations such as El Salvador, Honduras and Guatemala.
| Greater remittance receptors ($) in Latin America and the Caribbean in 2020 | Remittances received (expressed in one billion dollars)* | Greater remittance receptors in Latin America and the Caribbean according to GDP percentage | Remittances represented as a percentage of GDP |
|---|---|---|---|
| Mexico | 42.9 | El Salvador | 24.1% |
| Guatemala | 11.4 | Honduras | 23.5% |
| Dominican Republic | 8.3 | Haiti | 21.8% |
| Colombia | 6.9 | Jamaica | 21.2% |
| El Salvador | 5.9 | Nicaragua | 15.3% |
| Honduras | 5.6 | Guatemala | 14.8% |
| Brazil | 3.6 | Dominican Republic | 10.6% |
| Ecuador | 3.3 | Dominica | 9.5% |
| Haiti | 3.1 | Guiana | 6.3% |
| Jamaica | 3.0 | Belice | 5.6% |
While the entrance of remittances globally decreased, some countries actually received more money. Among them are Mexico, as well as Egypt, Pakistan and Bangladesh, numbers five, six and eight in the world.
This is also the case of Ecuador, which received$ 3,337.79 million in 2020, a item that represents 3.19% more compared to $ 3,234.65 million that entered the country in 2019.