Monday, March 14, 2011

Remittances are back

One sign of an economic recovery in the United States is the increase of remittances to Latin America, which had been down for several years.  Overall, they rose to $58.9 billion, a 0.2% increase.  Guatemala, Honduras, El Salvador and Mexico all increased between 6 and 16%.

We can therefore come to a few conclusions.

First, this once again suggests strongly that there is no exodus of migrants going back home.  They still see the U.S. as an economic engine from which they can draw.

Second, since we know that recent migrants are the most likely to send remittances, and many of them are undocumented, this constitutes anecdotal evidence that enforcement is not serving as a major deterrent.

Third, unfortunately, Latin American economies are still heavily dependent on the export of primary products, and that includes their own people.


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