Arrival of remittances to the country set a record in 2021
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- 07 Apr 2022
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The figure is attributed to the delivery of aid by the US government to its inhabitants and the recovery of the economies of Spain and Italy.
Ecuador broke its remittance record in 2021 by receiving 4,362.6 million dollars in remittances from abroad, the highest figure in its history; the figure also means 30.6% more than the 2020 record, according to a report issued by the Central Bank.
This amount meant 4.1% of its Gross Domestic Product (GDP), which in 2021 stood at 106,166 million dollars, with a growth of 4.2% over 2020, which still does not allow it to fully recover from the contraction suffered by the covid-19 pandemic.
Almost all of the remittances originated in the United States, Spain and Italy , the three countries where the largest number of Ecuadorian emigrants who send money to their relatives in Ecuador are found on a monthly basis.
Thus, the flow of remittances from the United States amounted to 2,768.1 million dollars (63.5%), followed by Spain with 909.5 million (20.8%) and Italy with 190.1 million (4. 4 %); while the rest of the world received 494.7 million dollars (11.3%).
According to the Central Bank, the increase in the flow of remittances in 2021 is attributed to the economic stimuli offered to families by the United States Government and its economic reopening, as well as the recovery of the Spanish and Italian economies.
However, this has also been influenced by an increase in Ecuadorian emigration in the last year, especially to the United States .
The increase in remittances sent from abroad to Ecuador was gradual and constant throughout 2021, to the point that the last quarter closed with a third consecutive record of money received.
While in the first quarter 920.8 million dollars arrived in Ecuador, the second quarter exceeded the 1,000 barrier for the first time, registering 1,087 million dollars, which was surpassed by the two following quarters with 1,144 and 1,209 million dollars, respectively.
The figures for remittances contrast with foreign investment, which in 2021 stood at 620.6 million dollars, with a drop of -43.2% compared to 2020, when 1,104.2 million dollars were registered for this concept . Read More...
