Santo Domingo.- The Dominican Republic received $10.3 billion in remittances in 2022, ranking third in Latin America and the Caribbean. Guatemala received $18.1 billion (12.4% of the total), and Mexico, leading with $61.1 billion (41.9%). India is the only country that received more remittances than Mexico.
The region received a total of $146 billion in remittances in 2022, thanks to the recovery of foreign employment in the United States and other factors.
Latin America and the Caribbean have become top destinations for remittances globally, second to South Asia. They have seen the fastest growth in remittance flows, becoming a crucial financial resource.
In the Dominican Republic, remittances amounted to $10.3 billion in 2022, contributing 9% of GDP and representing 7% of the region’s total.
The World Bank is concerned about the high percentage of GDP that remittances represent in recipient countries, particularly in Central America (19.1% median) and the Caribbean (6.4% median). The volatility of these flows has had an impact during the COVID-19 pandemic.
In the Dominican Republic, remittances account for 40% of the income of impoverished households and contribute 9% of national income as of September 2022, according to World Bank data.
While remittances have been a lifeline for many households, their high proportion of GDP raises questions about the competitiveness of other sectors. In Mexico, remittances represent 4.3% of national income.
The region has undergone macroeconomic reforms to improve resilience in the face of crises, such as inflation, geopolitical uncertainties, low commodity prices, and rising debt. Poverty and employment have generally returned to pre-crisis levels, and inflation has fallen to a regional average of 4.4%, lower than in OECD countries.