Robert W. Meins Remittances Specialist, Multilateral Investment Fund (MIF) Inter-American Development Bank (IDB)

2007: $ 66.5 2008: $ 67.5 (est.) + 1.5 %

Economic situation Immigration climate Exchange rates Inflation

Economic situation

Immigration climate

Exchange rates

Inflation

Source: US Census (CPS)

Source: US Census (CPS)

Source: World Bank

Source: New York Times

Source: European Central Bank Period of rise in remittances from Europe Rapid appreciation of the dollar

Source: Orozco 2007

Source: Orozco 2007

Remittance data continues to improve, but is not yet perfect Remittances are a family obligation, not driven by profit motives LAC remittances likely to rise +/- 1.5 % in nominal terms Crisis-related dollar appreciation will increase remittances in local currency terms in countries with free floating currencies. $67.5 billion will be received by Latin American families in 2008. 80% spent on consumption 20% on savings and investment. Remittance receipts remain a largely unused source of liquidity

Remittance data continues to improve, but is not yet perfect

Remittances are a family obligation, not driven by profit motives

LAC remittances likely to rise +/- 1.5 % in nominal terms

Crisis-related dollar appreciation will increase remittances in local currency terms in countries with free floating currencies.

$67.5 billion will be received by Latin American families in 2008.

80% spent on consumption 20% on savings and investment.

Remittance receipts remain a largely unused source of liquidity

Economic situation: Further economic slowdown affecting industries important to migrant workers Migration climate: Negative immigration climate in broader range of sending countries. Continuing rise in Hispanic unemployment. Exchange rates: Depreciation of the Euro Inflation: Sustained rise in food/fuel costs

Economic situation: Further economic slowdown affecting industries important to migrant workers

Migration climate: Negative immigration climate in broader range of sending countries. Continuing rise in Hispanic unemployment.

Exchange rates: Depreciation of the Euro

Inflation: Sustained rise in food/fuel costs

Remittances have been and will continue to be relatively stable financial flows Relative importance of intraregional remittances likely to increase. Once the global economy begins to recover, so will remittance growth

Remittances have been and will continue to be relatively stable financial flows

Relative importance of intraregional remittances likely to increase.

Once the global economy begins to recover, so will remittance growth

Robert W. Meins Remittances Specialist +1 (202) 623 1325 [email_address]

Robert W. Meins

Remittances Specialist

+1 (202) 623 1325

[email_address]