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

Remittances totaled $1,381.6 million as of August this year, of which $866.1 million came from the United States, reflecting the support that shipment flows from that economy mean for the Nicaraguan economy, according to Nicaragua’s central bank data. (BCN).

The $1,381.6 million reached as of August of this year amounted to $569 million, which is higher than the same period last year, according to the highest banking source. This represents a growth of 16.5 percent higher than that recorded in the same period in 2020 ($1186.0 million).

Most economies of remittance origin are growing in Nicaragua, but only the United States has reported a 22 percent increase.

Last year, through August, from the United States, where the largest immigrant community is from Nicaragua, income of $709.5 million, that is, an additional $156 million this year came from that country, favoring domestic consumption and much economic growth, estimated by the Central Bank Nicaragua increased this year by seven percent, based on activity that shrank in 2020.

Only in August from the United States entered $ 174.8 million, up from the same month last year, but in March this year the maximum was reached so far in 2021, with $ 190.7 million.

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Nicaraguans have benefited from the recovery of the US economy, after a year 2020 that was hit hard by the impact of the pandemic. However, the spread of the delta type of COVID-19 has created a kind of pessimism among that country’s economists, who have already lowered their expansionary forecasts for this year.

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

Another economy that has seen significant growth in remittance arrivals to Nicaragua is Spain, which reached $203.6 million as of August this year, up from $169.8 million last year in the same period. This means an additional growth of $33.8 million (an increase of 19.90 percent).

Costa Rica comes in third, with $175.5 million in income, just under $179.1 million. Costa Rica’s economy has been significantly affected by the epidemic, which has led to an increase in unemployment.

The community of Nicaraguan immigrants who settled in Panama through August sent $47.1 million, up from $46.6 million they received in the same period last year.

Among the other countries that the remittances reach are: 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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