In 2021, El Salvador received $7,517.1 million in remittances, mostly from the United States
In 2021, Salvadorans received $7,517.1 million in remittances, mostly from the United States, and do you know what El Salvadorans are spending those millions on?
The amount was standard income according to historical statistics for this variable. Compared to the same period in 2020, there was an increase of $1,587.2 million, according to data recorded by the Central Reserve Bank (BCR).
This year, Baladna’s total family remittances between January and April 2022 amounted to $2,444.1 million, registering a 4.2% growth, equivalent to $99.4 million, compared to the same period the previous year.
Only 1.7% of remittances in January and February entered through Chivo Wallet, according to the head of the Swiss central bank
The important fact is that the geographic breakdown of family transfers between January and April shows that the Western Region raised $413.0 million, registering a 3.3% growth. The neighboring region received $289.1 million (3.1% more), the central region received $892.0 million (an additional 2.7%) and the eastern region received $765.0 million, corresponding to 1.4% growth.
But what do Salvadorans spend on remittances?
According to the annual survey of “Hogares y Propósitos Múltiples” in El Salvador, conducted by the Ministry of Economy, in 2019, 82.5% of Salvadorans spent their remittances on consumption (food and housing), 4.7% on medical expenses, 4.5% on education and 3.2 % in savings funds.
A quick survey by El Diario de Hoy showed that the majority allocate funds for food, household items, medical consultations, medical treatments and medicines, as well as for entertainment.
Laura, a Santanica who lived in Los Angeles for 4 years and left her now 6-year-old son, explained, is in his mother’s care.
Monthly transfers that families receive in excess of the minimum wage
According to Laura, the hawala is also used for the medical care of her mother, who is 62 and has diabetes.
Mario Flores, who is also from the West, said his conversion is to pay his mother’s rent and her medicines, and he also helps one of his sisters with her studies.
“I don’t want my mom to have jobs, I send her to pay rent, her food, her medicine and also when I can send her clothes and shoes. I send my younger sister to pay for university, she is studying even to be a nurse,” explains Mario, who has been living in the US for 10 years.
Two other people consulted, who live in San Salvador and receive remittances, confirmed that they have bought a washing machine and a TV and also buy their medicine and go out to eat somewhere from time to time, thanks to the remittances they send. your daughter
Between January and April 2022, the three provinces with the highest income growth rate from family remittances were Cuscatlan at 7.4%, Ahuachapán at 5.7%, and La Paz at 5.2%. Of the total family remittances sent to El Salvador, 94.0% were sent from the United States, followed by Canada, Spain, Italy and the United Kingdom with 0.9%, 0.4%, 0.3% and 0.1% of the total, respectively, according to BCR data.
Remittances for family businesses