The Inter-American Development Bank publishes today on its web-site previsions for remittance flows in 2009 to Latin America: they will go down for the first time since 2000. And different countries are experiencing different situation. The Andean region is effected worse by the decline of the euro whereas the Mesoamerica region sees a strong dollar partially counterbalance the decrease in money flow.
According to the Banco de Guatemala, in the first two month of 2009 remittances to the country have diminished by 9.59% comparing with same period of 2008.
Monday, 16 March 2009
And it appears that the problem is not just limited to remittances. According to The Institute of International Finance, private financial flows from rich countries to poor ones will decrease by 63% this year: from US$ 456,8 billions in 2008 down to 165,4 billions in 2009. In 2007 these flows amounted to US$ 928,6 billion.Talking about Latin America, inflows will be down 51% from 2008 level and 76% considering 2007 level.
Money are basically heading home.
Tuesday, 10 March 2009