IFAD sees remittances to LAC growing 4-5% this year

- Wednesday, July 6, 2011

IFAD sees remittances to LAC growing 4-5% this year

The International Fund for Agricultural Development (IFAD) forecasts that remittances to Latin America and the Caribbean (LAC) will grow 4-5% in dollar terms in 2011, IFAD's remittances specialist Robert Meins told BNamericas.

Remittances to LAC have expanded around 5.6% so far this year, Meines said.

In 2011, IFAD expects to see the strongest growth of remittance flows to LAC in Central America, while the region's biggest receiver of remittances, Mexico, will see "very limited growth" at around 2.8%, he said.

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In real terms, this will mean negative growth in the case of Mexico due to local currency appreciation and inflation, Meines said, adding that other LAC countries could also see this effect.

MIGRATION TRENDS

A growing trend is that people in LAC are staying home or moving back to the region due to slow economic growth and high unemployment in the US and Spain, which are host to the largest numbers of migrants from the region, Meines said.

This is especially the case in fast growing countries like Brazil and Peru, he noted.

Another trend is that potential migrants are increasingly viewing LAC countries with strong-performing economies as alternative destinations for migration to the US, Europe and Japan, Meines added.

Rome-based IFAD is an international financial institution and a specialized agency of the United Nations. Its main focus is eradicating rural poverty in developing countries.