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

Remittances totaled $1,381.6 million in August of this year, of which $866.1 million came from the United States, reflecting the support that remittance flows from this economy mean for the Nicaraguan economy, according to the Central Bank of Nicaragua. (BCN).

According to the bank’s largest source, the total amount of $1,381.6 million reached until August of this year was $569 million, which is higher than the same period last year. This represents an increase of 16.5 percent over the same period in 2020 ($1,186.0 million).

Most remittance-based economies are growing in Nicaragua, but only the United States has reported a 22% increase.

Last year, through August, from the United States, where the largest immigrant community comes from Nicaragua, income of $709.5 million, another $156 million this year came from that country, for domestic consumption and a significant portion of the economic growth surge, which he estimated The Central Bank of Nicaragua, this year by 7%, based on activity that contracted in 2020.

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

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

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

Another economy that saw significant growth in inbound remittances to Nicaragua was Spain, which amounted to $203.6 million in August of this year, compared to $169.8 million in the same period last year. This means an additional growth of $33.8 million (an increase of 19.90 percent).

Costa Rica ranks third with revenue of $175.5 million, just under $179.1 million. Costa Rica’s economy has been significantly affected by the epidemic, which has led to high unemployment rates.

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

Other countries affected by remittances include: Canada $19.7 million, Mexico $4 million, El Salvador $8.3 million, and the rest of the world $57.3 million, according to official data.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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