World Bank says remittances to the region on the rise again

WASHINGTON (CMC):

After what was considered to be a "rough 2009", the World Bank says remittances are on the rise again in the Caribbean.

A briefing paper by the Washington-based financial institution said remittances "began to bottom out during the last quarter of 2009" and, as a result, "money transfers now appear to be on the rise" in Jamaica, Haiti and other places.

Data obtained from the Bank of Jamaica website showed that for the first seven months of the year, net remittances were US$947.0 million, an increase of 8.5 per cent, relative to the corresponding period of 2009. Improvements in total remittance inflow was based on improving macroeconomic conditions in source economies.

Decline reversed

Likewise, remittance inflows of US$635.4 million was recorded for the first four months of the 2010/11 fiscal year, representing a reversal of the decline noted in the corresponding period in fiscal year 2009/10. This, the central bank said, was consistent with the global developments occurring during the review period.

The briefing paper said remittances to Latin America and the Caribbean didn't fall as sharply as private capital flows to the region, as investors pulled out of emerging markets.

The bank said remittances to Latin American and Caribbean nations sank 12 per cent as the US and global economies "hit the skids" last year.

Expected increase

Overall, World Bank researchers said remittances to the region are expected to increase this year by an estimated 5.7 per cent and would also grow in 2011.

The World Bank said remittances to Haiti are expected to increase this year as relatives abroad seek to assist those at home.

It said the post-earthquake decision by the United States to grant temporary protected status to 200,000 Haitians living in the country illegally could also increase remittances by as much as US$360 million this year.

The bank said the Haitian Diaspora sent an estimated US$1.32 billion in remittances to their homeland last year. In 2008, remittances accounted for a fifth of the Haitian economy.