$866.1 million in remittances from the United States to support the economy

6.1 million in remittances from the United States to support the economy

Remittances in August of this year amounted to $1,381.6 million, of which $866.1 million came from the United States, reflecting the support that remittances from this economy represent for the Nicaraguan economy, according to the Central Bank of Nicaragua. (BCN).

According to the bank’s largest source, the total amount of 1,381.6 million dollars reached until August of this year amounted to 569 million dollars, an increase over the same period last year. This represents an increase of 16.5% over the same period in 2020 ($1,186.0 million).

Most remittance-based economies are growing in Nicaragua, but only the United States has reported 22 percent growth.

As of August last year, income for the United States, where Nicaragua’s largest immigrant community comes from, was $709.5 million, and this year another $156 million came from domestic consumption and an important part of economic growth. Banco de Nicaragua estimates this year at 7% based on contraction in 2020.

The US didn’t reach $174.8 million in the same month last year through August, but in March of this year, the limit was reached so far in 2021, at $190.7 million.

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Nicaraguans benefited from the recovery of the US economy after 2020, when the effects of the pandemic were hit hard. However, the delta rate differential for COVID-19 has sparked some pessimism among this country’s economists, who have already lowered their expansionary forecasts this year.

In an update to its forecast, the Association of Business Professionals lowered its growth forecast from 6.7 percent to 5.6 percent in May. But it raised expectations for next year from 2.8% to 3.5%.

Another economy that saw a significant increase in remittances to Nicaragua was Spain, which amounted to $203.6 million in August of this year, compared to $169.8 million in the same period last year. This represents an additional increase of $33.8 million (an increase of 19.90 percent).

Costa Rica ranks third with revenue of $175.5 million, just under $179.1 million. The pandemic has had a major impact on Costa Rica’s economy, causing unemployment to rise.

The Nicaraguan immigrant community, who lived in Panama through August, sent $47.1 million, compared to $46.6 million in the same period last year.

Other countries receiving remittances include: Canada $19.7 million, Mexico $4 million, El Salvador $8.3 million, and the rest of the world $57.3 million, according to official figures.

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