CentAm Remittances Seen Rising 10% in 2007

Remittances to Central America will grow by approximately 10% to about $12.1bn in 2007, according to the IDB’s Multilateral Investment Fund (MIF). Remittances will represent at least 10% of four countries’ gross domestic product: Honduras (27%), El Salvador (17%), Nicaragua (17%) and Guatemala (12%). They will total the equivalent of about half of Nicaragua’s exports, approximately 60% of Guatemala’s, about 75% of Honduras and almost all of El Salvador’s exports, says MIF. El Salvador leads CentAm in remittances per capita, reaching approximately 1m adults (averaging $300, 12 times a year). In Honduras, the fastest growing remittance market in the CentAm region, about 950,000 adults regularly receive remittances (averaging $225, 12 times a year). In Guatemala some 1.4m adults receive remittances (averaging $240, 12 times a year) while in Nicaragua 500,000 adults receive them (averaging $205, 10 times a year). Remittances to Costa Rica and Panama are less prevalent, but still reach important numbers of people: 300,000 adults in Costa Rica (averaging $250, eight times a year), and about 100,000 adults in Panama (averaging $320, 10 times a year).