In May, remittances continued to rise | Finance

During May, the total remittances sent by Colombian workers from abroad into the country totaled $717.4 million, the second-highest record since Bank Republica measured such remittances two decades ago.

(Read: Countries from which most remittances were sent to Colombia in 2020)

On the road, The cumulative figure in the first five months of 2021 was $3,332 millionThat’s 30.4% higher than those registered in the same period of 2020 when they totaled $2,555 million, according to the bank’s figures.

(Read: UN proposal to use remittances to reduce poverty)

The good behavior of remittances has been happening precisely since the beginning of the pandemic, making 2020 the best behavior with the arrival of resources from the income of overseas workers amounting to $6.902 million.

(Read: Remittances from abroad are on the rise)

On average, between the first January and May 31 An average of $22.2 million per day has been brought into Colombia this year.

Similarly, the figure for May represents an increase of 60.1% compared to the same month in 2020, indicating the dynamics of dispatching these resources.

Analysts explain that behind the recovery in the arrival of remittances in the country is the global economic recovery and the subsidies provided by the United States government, which have become, in part, remittances to Colombia and other countries that rely heavily on these resources, such as Central American countries or Africa.

Which is that with 6% to 8% growth expected in the increase in US GDP this year, influenced by a good vaccination plan, low interest rates and government stimulus packages, foreign workers will be able to send more resources to their countries.

Likewise, they point out that it is very likely that higher numbers will be recorded this year again when these remittances arrive.

Remittances arrive in Colombia mainly from the United States and Spain, although there has been a rebound in recent years from other places such as Chile, Ecuador, Argentina and France.

Regardless of the condition United State, Which has historically been the country from which the most remittances arrive with a record amount of 3572 million US dollars in 2020, Spain remains in second place with 1051 million US dollars.

But in the last 15 years The most significant changes occurred with countries such as Venezuela and Chile.

The first, which became the second trading partner of Colombia and to which thousands of workers immigrated from the 1960s and 1970s.
Moreover, workers’ remittances account for 2.5% of Colombia’s GDP.

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