Slumping economies in the United States, Spain and Japan are causing reverberations in the countries of Latin America as migrant workers send less money home.
The Inter-American Development Bank reported that for the first time since they began tracking remittances in 2000, remittances to Latin America declined in the fourth quarter of 2008, dropping 2% relative to the fourth quarter of 2007.
In January, remittances declined further, with Colombia experiencing a 16% drop relative to 2008, Brazil suffering a 14% decline, Mexico 12%, and Guatemala and El Salvador each falling 8%.
These numbers come as 2008 saw an average 10% increase in remittances. Nearly US$70 billion was sent back to families in those areas in 2008. Read More…