Country Report Guyana
- ID: 2138721
- May 2015
- Region: Guyana
- 28 Pages
- The Economist Intelligence Unit
Remittances to Latin America and the Caribbean reached a record US$65.4bn in 2014, according to recent data from the Inter-American Development Bank (IDB). This was the first time that remittances had exceeded their pre-crisis levels, after having suffered sharp declines since 2009 from a previous record of US$64.9bn in 2008. Nevertheless, growth this year remained uneven: although the levels of remittances to Mexico, Central America and the Caribbean rose, those to South America experienced a small decline.
Last year saw the most significant rate of growth in remittances since the 2008 global financial crisis, increasing by over 5% from a year earlier. After experiencing years of healthy growth (the value of remittances to the region tripled between 2001 and 2007, from US$21.9bn to US$64.3bn), remittance flows fell by 10% in 2009. This was followed by a moderate recovery in 2010 and 2011, but growth had been stagnant since then, flattening out around US$61bn over the past three years. However, although overall value has exceeded pre-crisis levels, growth was not evenly distributed across the region, largely owing to past migration flows. Mexico, Central America and the Caribbean saw large increases (mostly reflecting stronger growth in the US), while flows to South America remained stagnant, owing to weak economic growth in Europe (particularly Spain), as well as countries in the region that are home to large Latin American immigrant communities, such as Argentina, Brazil and, to a lesser extent, Venezuela.
The Latin American economies whose emigrants traditionally favour migration to the US saw the largest benefits last year as the US economy picked up steam. As a result of this growth, the number of Latin American migrants in the US grew by 6.3% from 2013, which also bolstered the growth of remittance outflows. Mexico, which is the recipient of around one-third of the region's remittances, received around US$23.6bn-an increase of 8% from the previous year, following three years of declines in 2011-13. Although the 2014 result was the highest level in six years, flows have still not recovered to their pre-crisis peak of over US$25bn. SHOW LESS READ MORE >
Country Report Guyana
Remittances set new record in 2014
Regional divide seen
Local effects still strong