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Honduras expects to close 2021 with flattering figures for remittance inflows to the country

According to official reports from the Central Bank of Honduras, remittances continue to be the country’s main source of foreign exchange, ahead of traditional exports such as coffee, maquila products, shrimp, among others.

This is how they represent around 20% of the country’s Gross Domestic Product (GDP), and constitute one of the main pillars of the family economy in Honduras. According to official figures, 90% of remittances come from Honduran immigrants living in the United States of America, 1.7% from those living in Spain, 1.1% from Canada, 1.1% from Panama and the remaining 3% from other countries; are used by the Honduran families that receive them, on average around 95% to cover food, health services and education expenses, and only 5% are used for capital investment or asset improvements.

For the year 2021, the authorities of the Central Bank of Honduras had estimated an increase in family remittances of 24% with respect to 2020, i.e., up to USD 7,150 million dollars. The last year in question, the income received in such concept was USD 5,735,600 million.

At the end of 2021, according to official reports, the figures are flattering, since from January 1 to December 9 of the current year, USD 6,854.7 million in remittances were recorded, i.e. USD 20 million per day.

December has traditionally been the month with the highest remittance inflows, due to the Christmas and New Year’s holidays, and the Central Bank of Honduras expects a considerable increase in remittances at the end of this year.

According to projections of the above mentioned Authority, it is estimated that an average of USD 7,151,300 million in remittances will be recorded, however, due to the rebound expected in the month of December, derived largely from the improvement in the U.S. economy and the fiscal stimuli approved in the United States of America, it is estimated that the increase may range between USD 7,350 million and USD 7,500 million.

Godofredo Siercke
García & Bodán